25th Aug 2020 11:04
(Alliance News) - Amur Minerals Corp said Tuesday it has raised GBP6.1 million through a share placing, the proceeds of which will go towards subscribing for loan notes in Nathan River Resources Pte Ltd, which owns and operates the Roper Bar iron ore project in Australia.
The nickel-copper-sulphide mineral explorer issued 348.6 million shares in the placing at a price of 1.75 pence per share, which reflects an 18% discount to Amur's closing price of 2.13 pence on Monday.
Shares in Amur Minerals were 11% lower at 1.90 pence on Tuesday in London, giving the company a market capitalisation of GBP19.1 million.
SP Angel Corporate Finance LLP acted as broker for the placing.
As part of the loan note subscription, Amur Minerals will acquire special purpose company Carlo Holdings Ltd from consultancy firm La Tourelle Consulting Ltd for a nominal sum of GBP1.00.
However, La Tourelle is due to receive a cash fee of USD151,775 and 6.7 million shares in Amur as part of its remuneration.
Via Carlo, Amur will subscribe for convertible loan notes in Nathan River with a principal amount of USD4.7 million. The notes will have a 14% coupon, paid quarterly, and Amur's notes in particular will be convertible to 19% of Nathan River's entire issued share capital.
Both Carlo and Swiss miner Glencore PLC will be entitled to a seat on the boards of Nathan River. This is due to Nathan River having an off-take agreement with Glencore, for the marketing and distribution of the project's iron.
The Roper Bar project has a resource of 446 million tonnes at a grade of 40% iron ore.
The remaining funds from the placing will be used by Amur Minerals to continue the development of the Kun-Manie nickel and copper project in Russia.
"Rarely do opportunities avail themselves where very near-term accretive value and cashflows are available to a mineral resource company. Our due diligence has confirmed that there are several positive components that offer such upside potential. Key to the successful restart of the Roper Bar Project, Nathan River Resource's management team is highly experienced in iron ore production," said Chief Executive Officer Robin Young.
Amur Minerals now has 1.36 billion shares issued overall.
By Dayo Laniyan; [email protected]
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