By Devika Patel
Knoxville, Tenn., May 28 - Eurasia Mining plc announced it has arranged a £1 million private placement of convertible loan notes with Deloan Investment Ltd.
The one-year loan can be drawn down in four tranches of £250,000 each, the first of which is to be drawn down Wednesday, and is convertible into ordinary shares at 5p per share at any time after the draw down.
However, if a tranche has not been converted by one year after the drawdown, it will automatically convert into ordinary shares.
The company also may redeem the loan in cash with Deloan's consent.
The loan does not carry interest. Instead, Deloan will receive 10 million warrants, exercisable for ordinary shares at 5p per share, for each £250,000 tranche. A total of 40 million warrants will be issued.
Proceeds will be used to fund ongoing working capital and pursue new projects in Russia.
London-based Eurasia Mining explores for platinum group metals and gold in Russia.
Issuer: | Eurasia Mining plc
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Issue: | Convertible loan notes
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Amount: | £1 million
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Tenor: | One year
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Conversion price: | 5p
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Warrants: | 10 million warrants for each £250,000 tranche (40 million total)
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Warrant strike price: | 5p
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Investor: | Deloan Investment Ltd.
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Pricing date: | May 28
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Settlement date: | May 28 (for £250,000)
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Stock symbol: | London: EUA
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Stock price: | 3.25p at close May 27
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