Equity Financing Facility

RNS Number : 4005G

Eurasia Mining PLC

06 May 2014

 



Eurasia Mining plc

("Eurasia" or the "Company")

£1 million Financing Facility

Issue of Warrants

Eurasia Minerals Limited (AIM:EUA) is pleased to announce that it is has secured a £1 million, five year Equity Financing Facility ("EFF") with Darwin Strategic Limited ("Darwin").

In conjunction with the EFF, Eurasia has today entered into a Warrant Agreement with Darwin pursuant to which Darwin can subscribe for up to 12,068,358 Ordinary Shares,  at 0.63p at any time prior to the expiry of 60 months from the date of the warrant agreement.

Commenting on the EFF, Managing Director Christian Schaffalitzky said: "We are very pleased to receive this funding support from Darwin Strategic.

The EFF with Darwin provides a highly flexible and cost efficient source of capital that we are able to access should we require further capital in the future.

One of the key benefits of this facility is that we remain at all times in complete control over the pricing and timing of any issue of equity as it can only be used at our discretion…."

Further details of the Equity Finance Facility

The EFF agreement with Darwin provides Eurasia with a facility of up to £1 million which (subject to certain limited restrictions) can be drawn down at any time over the next five years. The timing and floor subscription price of any draw down is always at the complete control and sole discretion of the Company. There are no penalty fees payable for not using the facility.

Eurasia is under no obligation to make a draw down and may make drawdowns at its discretion, up to the total value of the EFF, by way of issuing subscription notices to Darwin. Following delivery of a subscription notice, Darwin will subscribe and the Company will allot and issue to Darwin new ordinary shares in Eurasia ('Ordinary Shares').

The subscription price for any Ordinary Shares to be subscribed by Darwin will be set with reference to the average of the three lowest Closing Bid Prices in the period following the issue of the subscription notice.

Eurasia is able to specify in each subscription notice a minimum price below which Ordinary Shares will not be issued to Darwin. The company will have the right (with the consent of Darwin) to modify that minimum price at any time during the relevant Pricing Period.

The number of Ordinary Shares which may be issued under any individual subscription notice may be up to the lower of 25 per cent of the Company's issued share capital following completion of the relevant subscription, or four times the average daily trading volume of Eurasia's Ordinary Shares over the 15 trading days preceding the issue of the relevant subscription notice. This may be reduced in certain circumstances, including where the minimum price is not maintained.

The maximum amount of an individual subscription notice may not exceed £500,000 without Darwin's permission. Darwin is entitled to a commission of up to 5 per cent of amounts subscribed but may agree with Eurasia in lieu thereof for the subscription price for the Ordinary Shares to be discounted by 5 per cent.

There is also an over-allotment facility available to Eurasia, under which the Company may authorise Darwin, at Darwin's discretion, to increase the amount of the draw down by up to the aggregate undrawn amount under the EFF.

Darwin and Eurasia may mutually agree at the end of the pricing period to a variation of subscription price. This may allow for a larger subscription via any over-allotment facility authorised by the Company.

The issuance of a Subscription Notice is conditional upon the satisfaction of certain Subscription Notice Conditions which have been agreed between Darwin and Eurasia. Any subscription notice which Eurasia may issue will only be valid to the extent that it has the requisite shareholder authority to issue the maximum number of Ordinary Shares that Darwin may be required to subscribe under the relevant subscription notice.

Darwin and Eurasia may terminate the EFF agreement if certain conditions are not met.

For more information please contact: 

Eurasia Mining Christian Schaffalitzky / Michael de Villiers	[phone]
Darwin Strategic Limited Anand Sambasivan / Jamie Vickers	[phone]
WH Ireland Limited Katy Mithchell	[phone]

 

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