LONDON (Alliance News) - Amur Minerals Corp on Friday said it has signed a non-binding heads of agreement with the Russian government's Far East & Baikal Region Development Fund.
The agreement allows the pair to collaborate on funding of the flagship Kun-Manie nickel sulphide project located in the far east of Russia, expanding the funding scope from Amur's existing mandate for fundraising from potential partners in Russia, China and India.
The agreement provides a "launching point" for detailed negotiations establishing technical feasibility requirements, funding needs, terms and conditions, and timelines, Amur said.
"By successfully working together, the development of Kun-Manie as a mine and the construction of a smelting facility along one of the two main east-west rail lines across Russia will have a substantial positive impact on the social and economic wellbeing of the Oblast of Amur and its neighboring states in the Russian Far East," Chief Executive Robin Young said in a statement.
"This could well lead to the development of an industrial hub wherein Amur Minerals would have a leading role. Amur and the fund will endeavour to agree binding terms providing for developing a federal funding plan to defray the cost of infrastructure development," he added.
Shares in Amur were trading up 24% at 8.20 pence on Friday morning following the announcement, having jumped initially to 9.45p. The stock is still well shy of its 52-week high of 44.58p.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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Amur Minerals (AMC)