Amur Minerals (LON:AMC) has announced it is in advanced talks with a potential funding partner which could lead to investment of up to £12.5mln into the company.
A possible share subscription agreement could see investments spread over a five £2.5mln periodic share sales, which would be 90 days apart.
The new shares would be issued at prevailing prices (specifically the closing bid price on the day prior to the share issue), the company added.
Additionally, it is anticipated that share warrant would be issued to the investor, allowing further subscriptions during a five year period at 130% of the share subscription prices.
In a brief stock market statement, Amur added: “The company will make a further announcement as soon as discussions are concluded with the investor.”
The announcement comes as Amur shares advanced strongly, up as much as 45% at one point.
Amur shares closed Tuesday’s trading session at 11p each, up 2.75p or 33.3%.