The Company has also determined that investing in revenue generating assets to fund the corporate activity will strengthen the Company's balance sheet and financial position going forward. The Company is now moving swiftly down this route to execution of its strategy."
Robin Young, CEO of Amur Minerals Corporation, commented:
"Significant progress has been achieved on the TEO, and we are on track to complete this for December 2020. Beyond this, our next major milestone is the BFS which is a substantive body of work. As the Company started planning for the BFS, it was equally important that we plan for the future funding requirements. The addition of Adam Habib to the team has added to our capability to market the KM project to a wider pool of financing sources who have an interest funding projects through to completion of a BFS."
Adam Habib, Advisor to the Board, commented:
"The route to executing this funding strategy is tried and proven; first ensure that the TEO is delivered, put in place a binding agreement with a respected off-taker, and with the support of the off-taker raise sufficient funding to complete the BFS. The Company has also determined that investing in revenue generating assets to fund the corporate activity will strengthen the Company's balance sheet and financial position going forward. The Company is now moving swiftly down this route to execution of its strategy."
The Company announced on 11 June 2020 that it had received non-binding indicative offtake terms for both the nickel and copper concentrates. This is a TEO requirement for establishing that a marketable product can be generated.
The Company will continue to engage with the wider metals commodities market with the objective of obtaining binding offtake agreements. The attainment of binding agreements will be an important step in attracting the funding for the BFS.
Funding Strategy
The primary funding objective is to position the Company so that it can finance the BFS. It is envisaged that the funding will be principally through debt, with a further component funded through equity and / or a supporting investment from an offtake partner.
In addition, the Company is actively seeking to invest in mining opportunities in the near future that are either near cash flow or are already in production in established mining jurisdictions. The objective for this strategy is to provide revenue streams to fund the Company's corporate activities through the BFS and beyond.