Shares of Eurasia Mining plc (LON: EUA) edged higher after appointing Konstantin Firstov as the new CEO for its subsidiary companies operating in Russia’s Kola Peninsula.
Firstov will head Eurasia’s 100% owned subsidiary Yuksporskaya Mining Company and Terskaya Mining Company, 80% owned by Eurasia.
Today’s appointment follows the creation of Monchegorskoe LLC, which came about after Eurasia Mining signed a binding agreement with Rosgeo to create a joint venture in which it will own a 75% stake.
Monchegorskoe controls nine platinum group metal and battery metals assets in Russia’s Kola Peninsula with up to 104.6 million ounces of platinum equivalent reserves. The joint venture also holds the license for the Nyud open pit PGM and battery metals deposit.
Eurasia’s Yuksporskaya company is set to become a 75% shareholder in Monchegorskoe LLC after Rosgeo transfer the license for Nyud to the joint venture.
James Nieuwenhuys, Eurasia Mining’s CEO, said: “The board members are confident that Konstantin's experience, as the head of Achinsk open pit mining operations and as managing director of Rosgeo, augmented with my extensive EPC experience to manage turnkey construction and commissioning, will be important at Rosgeo JV projects going forward,”
Eurasia Mining shares are down 42% in 2021 after an unsuccessful search for a buyer of its entire operations. The Russia-focused mining company did not get any serious offers despite being highly profitable and holding valuable mining resources.
It is not clear why the mining conglomerate is looking for a buyer. Still, the move has seen its shares slide as investors wonder why none of the other global mining companies has jumped at the opportunity to acquire Eurasia Mining.
Meanwhile, Eurasia Mining shares are trading in the middle of a trading range but appear to be forming a support level that could create an excellent buying opportunity.
However, I will not be executing any trades at current prices, given the broader trading range.
*This is not investment advice.
Eurasia Mining share price.
Eurasia Mining shares edged 1.54% higher to trade at 19.8p, rising from Monday’s closing price of 19.5p.
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