The convertible loan consists of three advances with the initial advance of US$4mln to be drawn down by the company on February 14.
Each advance is repayable by the company in 12 monthly instalments.
If the Company elects not to repay any instalment on the applicable monthly repayment date, then the investors can elect to convert that outstanding instalment at any time into new ordinary shares in the company.
The conversion price of any part of an advance will 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 volume-weighted average price (VWAP) over the 5 trading days immediately prior to conversion.
In conjunction with each advance, the investors will be issued with warrants to the value of 30% of the value of each advance at an exercise price which is at a 30% premium to the price of each advance. Each set of warrants will be exercisable for a period of 3 years.
The net proceeds of the initial advance will be used by Amur to progress development of the Kun-Manie project including updating of the resource and reserves statement, development of an optimised production schedule, update of the current economic model including all newly acquired technical data and cost information and additional metallurgical test work; and for general and administrative requirements.