Eurasia Mining PLC's SP Crash

Alexei Churakov submitted the sale of 27,400,000 ordinary shares worth £0.29 each, valued at a grand total of £7,946,00.00, on 26th January 2021. At 16:02 on 27th January 2021, an RNS confirmed the sale had been processed.

Alexei is still in possession of 12,282,774 ordinary shares. 

Why did Alexei Churakov sell 27,400,00 ordinary shares?
Alexei Churakov owns a company called Venus Garden Holdings. 20th November 2017, Venus Garden Holdings subscribed £76,336 for 27,262,814 ordinary shares in Eurasia Mining PLC.
Coincidently, this number is almost identical to the volume of shares sold. 
The reason for this may be that the potential buyer of Eurasia does not want another company or subsidiary having any ownership in Eurasia. 
Alexei has been able to retain 12,282,774 as these are directly ties with Eurasia and not purchased as a subsidiary.

What caused the share price to drop so quickly?

By Mr Churakov selling a proportion of his holding caused the sale price to drop accordingly. Due to the large volume of shares sold, this triggered a quantity of  investors' stop losses. The share price fell from £0.293 at an alarming rate nearly 50%.

Stop losses are automatic triggers to sell a set volume of shares if the sale price was to match or drop less than a stated price. It is an effective way to ensure that you do not lose any more money than you are willing to stake, but it has limitations and as we have seen today, a detrimental effect to the stock market.

With a snow ball effect of stop losses being triggered, the sale price dropped at a lighting speed until finally resting at £0.15.

At 16:25, the share price finally started to crawl upwards from the traumatic dive, but the trading day ceased after two price monitoring extensions at £0.18. Many investors saw the opportunity to purchase in-demand shares at a cheaper than expected price and this has aided the share price from falling any lower. 

What do we expect to happen now?

Quite simply, nobody knows. 

One opportunity is for the shares to be bought up by those still believing in Eurasia. This is how the share price increased on the final stretch of the trading day. 

However, as the news travels of the near 50% loss, many additional sells are expected upon open on 28th January 2021 which has the potential to drive the share price lower.

We do expect Eurasia to be releasing an RNS in response to the sudden drop to ease investors. We all hope that this RNS is released in response to news regarding the sale of Eurasia. The process has been discussed behind closed doors due to a non-disclosure agreement so we know very little about the sale or the parties involved at this time.

We have to remember, that when selling shares, there needs to be a buyer. For any transaction to occur, both parties must exist. What we may be seeing is the first of many transactions to aid the sale process. If this is the situation, then the share price will raise upon the completion of the transaction. 

Eurasia Mining (EUA)

 Eurasia Mining Plc has been on my radar ever since I began trading. Eurasia (EUA) was one of the very first recommendations given to me and despite being told by everyone to buy in, I watched the price rise whilst I did my research, trying to fathom what makes this company so valuable. 

I finally bought a volume of shares at £0.16 after the horse had initially bolted, but I had researched enough to understand how and why this could potentially return such an incredible sum.

Eurasia announced that is is launching a Formal Sale Process under the UK Takeover Code following a "number of inbound expressions of interest from multiple parties interested in acquiring all of or a stake in its assets" on 1st July 2020.

10th August 2020, Eurasia was granted the exploration licence for Typil, a 24.5 km2 area of land with a 17km river course. For those who need to know why the river course is important to gold mining: volcanic action forces the rich earth minerals to the surface. This is then eroded by the running waters and carried down stream where it settles into the banks and creek beds. Over time, rivers change course, leaving the mineral rich creek bed dry and ready for miners. 
This in itself was major news, but also provided additional content to include in the sale. This in turn boosts the companies value and the potential increase in the sale price, resulting in a respective share price increase for all those invested when the company sells.

The best analogy I heard to describe this was: "When you sell a house, you make sure your garden is neat and tidy to encourage sellers." This made perfect sense to me.

During the release of the Interim Report on the 30th September 2020, Eurasia Mining Plc confirms that they have restructured the board and executive team in order to fully focus on the sale of the company. Additionally, the state that DLA Piper have been appointed to work on the legal proceedings of the sale. 

EUA provide a further RNS on 3rd December 2020 suggesting that they believe that the DFS will be ready for the final approval later in December. Shareholders waited patiently for news, however, nothing materialised. As a result, the share price trickled down at a rapid rate. Leaving the £0.40's and settling within the £0.30 and £0.28 range. 

Today, at 10:28hrs, Eurasia released the RNS confirming the approval of the West Kytlim Definitive Feasibility Study. It is understood that this long document is the final piece of the puzzle that could conclude the sale of the company.

We have our fingers crossed for an update on the sale process.

Tip: Build a base of reliable research material and suppliers.
People will often give you tips in which stocks to invest in. Eurasia was a stock that I delayed purchasing because I was sourcing information that I could rely on. If I knew where to look for the information I needed, then I could have bought in whilst the price was significantly cheaper.  

Rambler (RMM)

I quickly took an interest in the mining industry whilst coming to terms with the Stock Market as I was watching companies such as Eurasia Mining and Greatland Gold rocket up in price. Although I had invested a small pocket of money in these, I felt as if these investments were not 'mine'. I felt as if they had been handed to me and I hadn't earned it, like a small child being handed something of value but not truly understanding the hard work that went into creating it.

I have always followed the golden advice of "never put your money on something that you haven't researched yourself" but I was drawn the the price of £0.0025 per share. I understood it as researching a bank account before you start saving money with it.

I spent hours online, researching the company and discovering the latest news and assets. I found that Twitter, LSE.co.uk and other forum based sites provided key information, but I had to decipher a lot of fact from fiction. Understanding the role of rampers and de-rampers (people who intentionally influence others to buy or sell shares by manipulating news, fact or fiction. But the information that I did extract convinced me to trust my instinct. 

Slowly but surely, the RNS's began creeping out about how Rambler are finding funds to clear all the debts and how they have managed to stay operational, albeit at reduced rates, during COVID-19.

Watching price rise, green day after green day, it became an obsession to watch the numbers increase. This obsession has now made part of my daily routine. 

Today, Rambler opened incredibly strong and took an early lead with £0.0047 within an hour of the market being open and pretty much maintained that level throughout the day, closing at £0.0044. 

It didn't take long before my phone started ringing with friends and acquaintances thanking me for talking about Rambler. I hadn't known prior to this that others had gone about doing their own research and also thought that Rambler shows huge potential.

I am still learning a lot about the stock market, but if Rambler can grow 15% in a day that the majority of the market makes a loss (likely to have been impacted by the American President Inauguration), then I have great belief in that Rambler could return a handsome profit. 

This profit, I hope, will be multiple times the value of my original investment. I now know this to called a 'multi bagger'! This time last year, Rambler Metals & Mining was valued at £0.0240. Understandably this was pre-pandemic, however, they appear to have potential to make it back to that margin and commence making the profit us shareholders hope for!

Please always do your own research. This blog has been created to express my interests and discoveries with you and it's purpose is not to provide share advice. 

I take no responsibility for people investing into a stock that I have blogged about.