Eurasia Mining PLC (LON:EUA), a platinum group metals and gold producer, said it has received several proposals including one from a credible party for the potential acquisition of substantially all of the company’s assets.
It added that it has now concluded its strategic review and formal sale process.
Since launching the formal sale process in July 2020, Eurasia and its advisers have engaged with a wide range of parties, and received non-binding offers in respect of both a possible acquisition of the company as well as other transaction structures, the Russia-focused company announced on January 14 2021.
“The company has more recently focused its attention, including providing due diligence access, on a limited number of potential bidders who had shown consistent interest in Eurasia and its high-quality asset base,” it said yesterday in a statement released after the close of trading.
After the conclusion of a joint venture with Rosgeo, in which Eurasia will gain a 75% stake in nine platinum group metals (PGMs) and battery metals assets, Eurasia said it has now received several proposals including a proposal from a credible party for the potential acquisition of substantially all of the company’s assets.
The board has decided to focus on this potential asset sale, it said.
“The directors are committed to maximising the value for all the shareholders, and we are delighted to have received a proposal from a credible party that could allow us to pay a significant dividend to all shareholders,” said Eurasia’s executive chairman Christian Schaffalitzky.
“The board has a strong confidence in our opportunity to create a globally significant PGM and battery metals producer that can be achieved through our Rosgeo JV,” he said.
Eurasia also provided an update on its West Kytlim operations in the Urals.
A Technical Project has been formally approved by the Russian authorities and three plants will be in operation this year, as opposed to one plant last year. The first plant has started production and the second and third are expected to begin production this quarter.
The approval allows for an increase in production volumes as well as mitigating the single asset risk that the company was exposed to in previous years, it noted.
“After significantly strengthening our position in the open pit PGM district of the Urals and in the PGM and battery metals district of Kola recently, we are enthusiastic to advance a potential deal that provides an opportunity to monetise the value to Eurasia’s shareholders,” said James Nieuwenhuys, Eurasia’s chief executive and managing director.
“We are also focused on the creation of a globally significant producer of PGM and battery metals. We believe the timing is perfect taking into account the consistent supply disruptions in PGM and battery metals segments,” he concluded.