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Eurasia Mining (EUA) Shares Slide Following Rosgeo JV Update

Sam Boughedda trader
Updated 15 Jun 2021

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Eurasia Mining operations

Shares of Eurasia Mining (LON: EUA) are down over 2% on Tuesday after the company provided an update on its joint venture with Rosgeo.

The company said that the first joint venture company, Monchegorskoe LLC, was created to hold the licence for the Nyud open pit PGM and battery metals deposit.

In March, Eurasia signed a binding agreement to create a joint venture with Rosgeo in which Eurasia will own a 75% equity stake in nine PGM and battery metals assets.

Eurasia's 100% subsidiary Yuksporskaya Mining Company / Yuksporskaya Gornaya Kompaniya (YGK) has signed an agreement with Rosgeo Group for YGK to become a 75% shareholder in Monchegorskoe LLC after the licence for Nyud is transferred from Rosgeo to Monchegorskoe LLC.

Eurasia will also have a right to acquire Rosego's 25% shareholding in Monchegorskoe LLC upon completing a JORC Code compliant competent persons report on Nyud.

James Nieuwenhuys, CEO and Managing Director of Eurasia commented: “We are enthusiastic to create a globally significant PGM and battery metals company with our partner Rosgeo, a large internationally diversified company.

“We are using the momentum of hydrogen and EV markets growing fast on the one hand and the traditional PGM regions struggling with various challenges including underground mine floods and limited electricity supply on the other hand.

“This year of 2021 is unprecedented for Eurasia in terms of the Rosgeo JV completion, West Kytlim production ramp up and the cash balance the Company has at hand, all contributing to Eurasia's strong position to execute on its strategy”.

EUA-price-chart
Source: IG

Eurasia's share price is currently down 2.65% at 22.4p.

Should you invest in Eurasia Mining shares?

Eurasia Mining shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Eurasia Mining shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.Â