Eurasia Mining still working on sale of Russian assets

Eurasia Mining said in an update on Thursday that its primary focus was still on the sale of its Russian assets.

The AIM-traded firm said that while discussions were ongoing with counterparties in Hong Kong and Russia, no binding agreements had been reached.

As of 30 November, Eurasia's cash assets stood at £0.52m, with no holdings in US treasury notes.

Additionally, unsold concentrate inventory as of 30 June was valued at £3.5m.

Despite no significant capital expenditure planned for Russian assets in 2024 and the proposed sale of concentrate, the company said it possessed sufficient working capital to meet its obligations until the end of the first quarter of 2024.

It said its cash reserves were held outside Russia in dollar and sterling accounts, providing insulation from rouble foreign exchange fluctuations.

Regarding its projects, the firm's West Kytlim mine remained sale-ready, with no production expected in 2024.

Discussions regarding the sale of the 2022 concentrate were also ongoing.

However, no updates under the JORC code were planned for the Monchetundra Project and the Nittis-Kumuzhya-Travyanaya (NKT) area.

The Nyud Project, no longer under the company's control after the expiration of the Rosgeo agreement, was written off in the company's 2022 annual results.

It said it had no immediate plans for further work on the project.

On a positive note, Eurasia said it acquired a licence for the Travyanaya area, directly adjacent to the NKT area, in November.

Although no work was planned for the licence in 2024, it would be included among the assets available for potential sale.

Regarding legal matters, the proceedings between Eurasia and Queeld Investments and Mispare had been mutually stayed, with share certificates to be released to Queeld and Mispare in March.

The dispute with former legal adviser Gowling WLG UK regarding unpaid invoices amounting to £0.11m remained subject to ongoing legal discussions.

Eurasia Mining said it remained vigilant about regulatory compliance and sanctions, asserting that its current operations did not violate US, UK or EU sanctions and confirming no engagement with sanctioned persons, entities, or agencies.

Finally, Eurasia clarified that it was not currently exploring a dual listing on the Moscow Exchange.

"We appreciate our shareholders' support as we continue to pursue the possible sale of our Russian assets," said chairman Christian Schaffalitzky.

"Our main project at West Kytlim has seen no production of concentrate through 2023."

Schaffalitzky said the company had maintained the assets in a sale-ready state.

"Currently, the company is not developing further mining assets.

"The board and senior executives remain hopeful of a successful conclusion to the sale of assets process and we look forward to updating our shareholders in this regard as appropriate."

At 1547 GMT, shares in Eurasia Mining were down 20.72% at 1.55p.

Reporting by Josh White for Sharecast.com.