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(Alliance News) - AIM-listed mining firm Amur Minerals Corp said Monday it raised GBP1.2 million through a discounted share subscription in order to repay a loan and fund the business.
Amur issued 70.6 million shares at 1.7 pence per share, with an unnamed asset manager specialising in natural resource investments subscribing to the entirety of the shares.
Shares in Khabarovsk, Russia-based Amur were 22% higher at 2.26 pence in London on Monday, having closed on Friday at 1.85p.
Amur will use the funds to repay a GBP625,000 convertible loan owed to Riverfort Global Opportunities PCC Ltd and YA II PN Ltd, including interest. In addition, Amur has agreed not to make any further drawdowns under the convertible loan facility for at least three months and to seek additional financing options.
The remainder of the funds raised will be used for general working capital purposes.
"The fundraise strengthens the company's financial position as we continue our work on the TEO workstreams, and the follow on DFS, and will update the market with the progress of these various workstreams as and when appropriate," Chief Executive Officer Robin Young said.
"As previously noted in the interim accounts released on 30 September 2019, Amur continues to engage with potential strategic partners that have expressed an interest in advancing the Kun-Manie project," Young added. "In light of the ongoing strength in the nickel price, the company hopes to update the market with positive progress in due course."
Following admission of the subscription shares - expected on Thursday - Amur will have 836.0 million shares outstanding.
By Ahren Lester; ahrenlester@alliancenews.com
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