Amur Minerals enters $10m convertible loan facility

Nickel-copper sulphide mineral exploration and resource development company Amur Minerals Corporation announced on Tuesday that it has entered into a convertible loan facility of up to $10m, with Cuart Investments PCC and YA II PN, in an investment consortium arranged by RiverFort Global Capital.

The AIM-traded firm said the convertible loan of up to $10m consisted of three advances, with the initial advance of $4m to be drawn down on Wednesday.

A subsequent advance of up to $2m, or upon mutual agreement up to $3m, and a final advance of an amount to bring the total to a maximum of $10m would be available to the company, with the second advance being available after 121 days, and the third advance 240 days after the initial advance.

Each advance was repayable by the company in 12 monthly installments.

The board said that, if the company elected not to repay any installment on the applicable monthly repayment date, then the investors could elect to convert that outstanding installment at any time into new ordinary shares in the company.

It said the conversion price of any part of an advance would either be made by reference to the lower of 130% of the price at the date of the advance or 90% of the lowest daily VWAP over the five trading days immediately prior to conversion.

In conjunction with each advance, the investors would be issued with warrants to the value of 30% of the value of each advance at an exercise price, which would be at a 30% premium to the price of each advance.

Each set of warrants would be exercisable for a period of three years.

“We are pleased to have completed this financing with RiverFort Global Capital allowing us to continue the advancement of our Kun-Manie nickel copper sulphide project toward production,” said Amur CEO Robin Young.

“Being the largest undeveloped nickel copper project located centric to the three largest nickel consuming nations in the world, we can continue our field work and engineering efforts in anticipation of the potential and significant disruption in the future nickel market.

“In addition, we shall continue our work with Medea Financial Partners in the identification of long term project financing alternatives available from various financial institutions and potential strategic partners.”

Young added that the “timely” funding would allow the company to continue to define and refine currently defined operational parameters and engineering designs, as well as evaluate new options and alternatives that were arising from the EV potential.

“This is key in allowing Amur to take advantage of the anticipated improving nickel market that is being buoyed by the electric vehicle market.”