Eurasia Mining Raises £3.15m in Private Placement
Why we think this is neutral
The moderately discounted 8% raise price suggests some investor skepticism, but the relatively small size of the raise and the strategic rationale behind it, such as financing the AIX dual listing and replacing the Sanderson facility, are positive factors that balance out the negatives.
Key Points
- Eurasia Mining raises £3.15 million through a private placement of new shares and warrants to US and UK institutional investors
- The raise was conducted at a 8% discount to the previous closing price of 4.75p per share
- The net proceeds will be used to finance the planned launch of Eurasia's dual listing on the Astana International Exchange (AIX) in Kazakhstan and to replace the existing Sanderson convertible loan facility
- The participation of US institutional investors could help increase awareness of Eurasia among US investors
Summary
Eurasia Mining Plc has raised approximately £3.15 million through a private placement of new ordinary shares and warrants to US and UK institutional investors. The raise was conducted at a 8% discount to the previous closing price of 4.75p per share. The net proceeds will be used to finance the planned launch of Eurasia's dual listing on the Astana International Exchange (AIX) in Kazakhstan, as well as to replace the existing Sanderson convertible loan facility. The participation of US institutional investors could help increase awareness of Eurasia among US investors, which may be advantageous given the recent geopolitical developments and US interest in critical mineral exploration in the Russian Arctic.