AMC.L Regulatory News (AMC)

26 Mar 2007 07:03

Amur Minerals Corporation26 March 2007 26 March 2006 Amur Minerals Corporation ("Amur" or "the Company") AMUR MINERALS CORPORATION (AIM: AMC) PRELIMINARY FINANCIAL RESULTS - YEAR ENDED 31 DECEMBER 2006 Highlights for the year ending 31 December 2006 • Successful admission to trading on AIM raised US$7 million capital • Completed third field season on the Kun-Manie nickel-copper licence, including 54 drill holes (3,224 metres). • Resource estimate increased to 254,500 tonnes Ni and 73,000 tonnes Cu. • Increased in ground valuation to $100 million USD. • Discovery and confirmation of the Maly Krumkon zone with drilling as well as the identification of other drill targets established. • Award of the Anadjakan copper-gold exploration licence. Chairman Robert W. Schafer commented: "As expected, 2006 was an incrediblyexciting year. The Admission to AIM gave us the capital not only to expandoperations at Kun-Manie, but also to look at and acquire additional newopportunities. "We expanded the resource by 21% and increased the valuation by 43% at Kun-Manieand have initiated a prefeasibility study that we anticipate to complete aheadof our original schedule in 2007. Given the strength of our project portfolio,balance sheet and strengthened nickel prices, the Board remains confident that2007 will show further success." ENDS The full Chairman's Statement and Preliminary financial information areattached. The published Annual Report will be posted to shareholders andavailable as a download file by 2 May, at www.amurminerals.com. Enquiries: Amur Minerals Corp. RBC Capital Markets Parkgreen CommunicationsRobin Young Andrew Smith Victoria ThomasCEO Martin Eales+44 (0) 7981 126 818 +44 (0) 20 7029 7881 +44 (0) 20 7851 7480 Chairman's Statement Last year, I said that 2006 would be a very exciting year. I am pleased toreport that, 2006 exceeded our expectations both in and out of the field. Wemarkedly expanded the potential of our Kun-Manie nickel and copper project,while adding new projects. 2006 in Review Last year was Amur's third field season on our flagship property Kun-Manie wherewe expanded both the size of the resource and its associated value. Using alocal drilling contractor, we completed 54 diamond core drill holes containing atotal of over 3,200 metres. The primary focus of the drill programme was withinthe Vodorazhdelny and Ikenskoe areas, with scout holes completed in the newlydiscovered area of Maly Krumkon. This work increased the overall geologicalresource from 46.1 million tonnes to 54 million tonnes of mineralisation. Withthe increased drilling density, we now have resources in the JORC compliantMeasured category and significantly increased the Indicated resource base aswell. This obviously has increased our confidence in the ability to ultimatelyconvert these resources into minable reserves as we advance the project towardsa production decision. In addition, we not only identified additional drill targets in and around MalyKrumkon and Ikenskoe located along our primary exploration target, the KrumkonTrend. We also discovered a new exciting target area, Yan Hegd, located to thenorth of the main trend. During the course of the year, we conducted preliminary assessment of thegeological resources to determine the potential to open pit mine Vodorazhdelny,Ikenskoe and Maly Krumkon. This work was conducted by SRK Consulting, who have,as a result, embarked on a prefeasibility study of the potential of theKun-Manie project. In summary, 2006 was a year of significant accomplishmentsat Kun-Manie, which provides a further foundation for successful development. As we set out in our AIM admission document dated 10 March 2006, it is thedirectors' intention to implement a corporate growth strategy beyond theconfines of Kun-Manie by securing mineral exploration properties which havesolid exploration potential leading the potential production. Throughout theyear we reviewed opportunities either to acquire already licensed properties orto apply for new licences, and, in keeping with this strategy, we have beenawarded two new licences. In August 2006, we were awarded the Anadjakan copper-gold licence, located inthe Khabarovsk Krai. The Anadjakan licence covers an area of 250 squarekilometres and is readily accessible by maintained roads with abundantinfrastructure located nearby. We will conduct our first field season atAnadjakan in 2007. In February 2007, we acquired the Kustakskaya licence at auction. The licenceis a 20 year combined exploration and production licence covering an area thatis an eastward extension of the Krumkon Trend into the Khabarovsk Krai. Overthe next twelve months, we will continue our focused acquisition strategy tobuild a portfolio of projects for the group. Outlook for 2007 As we publish these results and our annual report is going to press, we havealready signed a contract for drilling and related exploration works atKun-Manie in 2007. We are confident in our ability to increase the resource byat least another 50,000 tonnes of contained nickel this year. Ourprefeasibility study of Kun-Manie will be completed by early summer, in time toserve as useful input to guiding the drilling programme. In addition, we aremobilising for reconnaissance work at Anadjakan that is designed to delineatedrill targets for the future. We will be reviewing the data we have received onKustakskaya to craft our exploration programme for the 2008 field season. Inshort, we have demonstrated our ability to successfully work in Russia and tomeet or exceed the objectives stated in our Admission document of March 2006,and we are confident in continuing our success in 2007. Robert W. Schafer 23 March 2007 Copies of audited accounts will be sent to shareholders by 2 May 2006. Copiesof the annual report and accounts will be made available on the Company'swebsite www.amurminerals.com. AMUR MINERALS CORPORATION AND ITS SUBSIDIARIESCONSOLIDATED BALANCE SHEETAS AT 31 DECEMBER 2006(Amounts in '000s US Dollars) Notes 31 December 2006 31 December 2005 NON-CURRENT ASSETSCapitalised exploration costs 6,275 3,915Property, plant and equipment 12 11 Total non-current assets 6,287 3,926 CURRENT ASSETS Cash and cash equivalents 2,999 2,042 Other receivables 61 252 Total current assets 3,060 2,294 Total assets 9,347 6,220 CURRENT LIABILITIESTrade and other payables 15 1,710 Total current liabilities 15 1,710 SHAREHOLDERS' EQUITY Share capital 5,557 15Share premium 10,424 10,108 Share options 472 - Accumulated losses (7,121) (5,613) Total shareholders' equity 9,332 4,510 Total liabilities and shareholders'equity 9,347 6,220 AMUR MINERALS CORPORATION AND ITS SUBSIDIARIESCONSOLIDATED INCOME STATEMENTFOR THE year ENDED 31 DECEMBER 2006(Amounts in '000s US Dollars) Note Year ended 31 Year ended 31 December 2006 December 2005 Administrative expenses (1,388) (863) Partnership agreement termination - (667) Operating loss (1,388) (1,530) Investment provision (110) - Share based payments (224) - Foreign currency exchange gain/(loss) 143 (37) Bank interest received 71 9 Loss before tax (1,508) (1,557) Taxation - - Loss for the year (1,508) (1,557) Loss per share: basic & diluted USD (0.02) USD (200.72) Adjusted loss per share: basic & diluted USD (0.02) USD (0.05) AMUR MINERALS CORPORATION AND ITS SUBSIDIARIESCONSOLIDATED CASH FLOW STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2006(Amounts in '000s US Dollars) Year Year ended ended Note 31 December 2006 31 December 2005Cash flow from operating activities:Net Loss before Taxation (1,508) (1,557)Adjustments to reconcile loss before tax to net cash usedin operating activities:Depreciation 9 8Share based payment - 67Grant of carried equity shares 224 -Investment income (71) (9)Investment provision 110 -(Increase) in accounts receivable (60) -(Decrease)/increase in accounts payable (660) 322 Net cash used in operating activities (1,956) (1,169) Cash flow from investing activities:Exploration expenditure (2,581) (2,343)Purchase of property, plant and equipment (10) (8)Interest received 71 9Investment (110) Net cash used in investing activities (2,630) (2,342) Cash flow from financing activities:Proceeds from issue of share capital 6,433 5,086(Repayment of) / proceeds from prepaid share capital (125) 459Financing costs associated with share issues * (765) (117) Net cash from financing activities 5,543 5,428 Net change in cash and cash equivalents 957 1,917 Cash and cash equivalents brought forward 2,042 125 Cash and cash equivalents carried forward 2,999 2,042 Material non-cash transactions Financing costs satisfied by the issue of shares - 125Proceeds from issue of shares retained by broker 686 -Expenses paid by broker (686) - * Includes commissions paid on financing raised and costs associated withlisting. AMUR MINERALS CORPORATION AND ITS SUBSIDIARIESSTATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 31 DECEMBER 2006(Amounts in '000s US Dollars) Share Share Notes capital premium account Accumulated losses Share options Total Balance at 31 December 2004 4 2, 089 (4,056) - (1,963)Net loss for the year - - (1,557) - (1,557)Shares issued 11 - - - 11Premium on shares issued - 5,275 - - 5,275Premium on share options - 3,045 - - 3,045Costs associated with issue -of share capital - (301) - (301)Balance at 31 December 2005 15 10,108 (5,613) - 4,510Net loss for the year - - (1,508) - (1,508)Shares issued 7,128 - - - 7,128Premium on shares issued - 316 - - 316Premium on share options - - - 472 472Costs associated with issue -of share capital (1,586) - - (1,586)Balance at 31 December 2006 5,557 10,424 (7,121) 472 9,332 Notes to the preliminary statement of results for the year ended 31 December2006 1. Basis of preparation The financial information has been prepared in thousands of United StatesDollars in accordance with International Financial Reporting Standards ("IFRS").The accounting policies applied in preparing the financial information areconsistent with those adopted and disclosed in the Group's accounts for the yearended 31 December 2005. 2. Loss per share Basic loss per share is based on a loss of $1,508 thousand (2005: loss of $1,557thousand) and a weighted average number of shares in issue of 80,796,286 (2005:split adjusted 31,026,419). The diluted loss per share has been calculated onthe same basis as basic loss per share because the effect of the potentialordinary shares (share options) reduces the net loss per share and is thereforeanti-dilutive. 3. Publication of unaudited information The financial information set out above has not been audited. The consolidated income statement, balance sheet and cash flow statement andassociated notes have been extracted from the Company's 2006 financialstatements, which will be submitted to the board for approval on or about 15April 2007. The report and accounts will be posted to shareholders by 2 May2007. 4. Annual General Meeting The company's Annual General Meeting will be held at 20 Voznesensky Periulok,Building 3, 125009 Moscow, Russian Federation on 28 May, 2006 at 12:00 pm. 5. Dividends The directors do not recommend the payment of a dividend for the period. 6. Qualified person review The information contained in this announcement has been reviewed and approved bythe CEO of Amur, Robin Young. Mr. Young is a Geological Engineer (cum laude)who is a qualified person for the purposes of the AIM Guidance Note for Mining,Oil and Gas Companies. Mr. Young is Chief Executive Officer of Amur MineralsCorporation and has over 31 years experience in mineral exploration, resourcemanagement and mining. Mr. Young is a Qualified Professional Geologist, asdefined by the Toronto and Vancouver Stock Exchanges. This information is provided by RNS The company news service from the London Stock Exchange