JOHANNESBURG (miningweekly.com) – Base metals company Amur Minerals has entered into a convertible loan with Cuart Investments and YA II PN to progress development of the Kun-Manie nickel/copper sulphide project in Russian Far East.
The investors, which were arranged by RiverFort Global Capital, will lend the company up to $10-million cash in three separate advances, the first $4-million of which will be drawn down this week.
Each advance is repayable in 12 monthly instalments, at 110% of the principal portion of the repayment and its accrued interest. If Amur elects not to make a repayment of an instalment, the investors could elect to convert the instalment into new ordinary shares.
Amur CEO Robin Young said on Wednesday that the funding would allow the company to continue its field work and engineering efforts in anticipation of the potential disruption in the future nickel market.
"This timely funding allows us to continue to define and refine currently defined operational parameters and engineering designs, as well as evaluate new options and alternatives that are arising from the electric vehicle potential. This is key in allowing Amur to take advantage of the anticipated improving nickel market that is being buoyed by the electric vehicle market,” he said in a statement.
Amur is continuing too with Medea Financial Partners in the identification of long-term project financing alternatives available from various financial institutions and potential strategic partners.
The company’s stock price fell 6.9% in London to trade at 6.08p a share by 10:10 GMT.