Business
Company Update
Company Update.
About this update from Aterian Plc
[{"type":"text","content":"\n \n \n RNS Number : 9776M\n Eastinco Mining and Exploration PLC\n 14 May 2020\n \n \n \n 14 May 2020\n \n Dear Shareholder:\n \n I write with another update on Eastinco Mining and Exploration PLC (\"Eastinco\").\n \n Macro Environment\n \n \n Two weeks ago on the 30th of April, the government of Rwanda issued guidelines for the partial re-opening of the economy while maintaining preventive measures to guard against new outbreaks of COVID-19. These new measures are aimed at protecting all residents and visitors of Rwanda; and, Eastinco will continue to follow all guidelines while completing the wash plant and starting operations. We are very excited to get back to work as it will allow us to complete the wash plant over the course of the next few weeks. \n \n Market Environment\n \n Artisanal mining operations for most mines in country have been suspended. The underlying demand for tantalum nevertheless remains intact. Thus, Eastinco has seen an uptick in tantalum pricing from traders seeking adequate supplies to meet demand requirements. We intend to begin production as soon as possible to demonstrate our capabilities to meet this demand and to seek additional licenses. We believe that the Company is well positioned to become one of the top tantalum miners in the country.\n \n Sources of Capital\n \n As previously stated, our cash levels are relatively low given the delays to the wash plant and production. To alleviate this situation and to secure our long term prospects we are presently seeking new equity capital from the exercise of existing warrants held by share and warrant holders. The warrants' exercise price of 1.5 pence allows for the acquisition of equity for a pre-money valuation of approximately £5.5 million or an approximate 50% discount to the prevailing price. We are seeking conversion of no less than 30% of the outstanding warrants which would raise approximately £700,000 on or before 22 May 2020. This intended completion date is later than originally communicated, however fits with the extensions to the COVID-19 lockdown in Rwanda.\n \n Shareholders exercising warrants will be offered new four year warrants with a 3 pence exercise price for each warrant exercised. The value of this new warrant is approximately 1 pence per warrant*. Sh...