Amur Minerals (AMC) on Monday raised £1.2 million of equity and told investors that strategic partners have expressed interest in advancing its Kun-Manie project.
The AIM listed nickel-copper sulphide explorer issued over 70 million shares to an asset manager specialising in natural resources, at a price of 1.7p, which are expected to begin trading on Thursday, 7 November.
Robin Young, CEO of Amur Minerals Corporation said: "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.”
He added: “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.”
Mr. Young also noted to the strength of the nickel price, telling investors that the company hopes to update the market in due course with positive progress
Shares in Amur rallied 18% to 2.2p in early trading on Monday
£625,000 of the funds raised are to be used to pay its convertible loans to Riverfort Global Opportunities PCC Limited and YA II PN Ltd, with the rest being used for general working capital purposes.
Amur also agreed not to make any further drawdowns under its convertible loan facility with Riverfort for three months and to find other sources of financing to would avoid any future drawdowns from the convertible loan facility.
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