Eurasia Mining (LON:EUA) secures $15m in funding

Eurasia Mining has secured additional funding for its Rosgeo Joint Venture through a private placement. Zaven Boyrazian explores the details.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Eurasia Mining (LSE:EUA) has successfully raised $15m through a private placement to help fund its ongoing Rosgeo JV mining project. Investors had a somewhat muted response to the announcement. And due to new shares being issued, the subsequent dilution effect triggered a slight decline in the EUA share price. However, over the last 12 months, the stock has climbed just under 40%.

The details

On Monday, the early-stage mining business announced that 41.5 million new shares had been sold to institutional investors at 26p per share. In addition, Eurasia mining also sold new equity warrants that grant these institutions the right to buy another 41.5 million shares at a price of 26p within the next three years. 

The raised capital has enabled the company to boost its cash position from $20m to $35m. The plan is to deploy the newly acquired funds to further finance its joint venture with Rosgeo in developing a collection of open-pit mines. These mines contain various battery-essential metals, including palladium, and platinum, among others.

The Eurasia mining share price has its risks

What’s next for the EUA share price?

Management has decided to limit further private equity placements to mitigate the effects of shareholder dilution. In total, an additional 83.1 million shares have been created. By comparison to the 2.9 billion already in circulation, this places the dilution effect to be around 2.9%. However, as the warrants currently remain unexercised, the full extent of this dilution effect has yet to take place.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

2 lessons from the HSBC share price soaring 159% in four years

Christopher Ruane looks at the incredible performance of the HSBC share price in recent years and learns some lessons for…

Read more »

Portrait of elderly man wearing white denim shirt and glasses looking up with hand on chin. Thoughtful senior entrepreneur, studio shot against grey background.
Investing Articles

After a 2,342% rise, could this FTSE 250 stock keep going?

This FTSE 250 stock boasts a highly cash-generative business model and has been flying for years. Is it time to…

Read more »

Investing Articles

It’s up 70%, but the experts expect the IAG share price to climb still further

Why didn't I buy when I was convinced the IAG share price was likely to soar? And is there still…

Read more »

Businessman use electronic pen writing rising colorful graph from 2023 to 2024 year of business planning and stock investment growth concept.
Investing Articles

2 UK stocks with recovering profit margins

This writer considers a pair of UK stocks with very different share price trajectories following the pandemic. Would he buy…

Read more »

The flag of the United States of America flying in front of the Capitol building
Investing Articles

Will Trump’s tariffs squeeze this FTSE 100 giant’s profits?

Our writer looks at how the latest news around US tariffs might impact FTSE 100 company Diageo. Should he be…

Read more »

Investing Articles

Up 95%, is this FTSE winner the best high-yield star for me to buy now?

Do we have to choose between share price growth and high-yield dividends? In this case, over the past year, it…

Read more »

Asian Indian male white collar worker on wheelchair having video conference with his business partners
Investing Articles

2 dividend-paying FTSE shares that could benefit from the AI revolution

Our writer examines two dividend-paying FTSE shares and explains some of the opportunities and risks he sees in their exposure…

Read more »

Investing Articles

Up 140% and rocketing out of the FTSE 250! Is it too late for me to buy this red-hot stock?

Miniature war games hero Games Workshop has outgrown the FTSE 250 and is hammering at the door of the UK's…

Read more »