Nickel mine developer Amur Minerals Corporation (LON:AMC) has signed an outline deal that could see it working closely with IG Copper (IGC).
Specifically, the pair is looking at “synergies” in processing the companies' respective sulphide concentrates.
Located in Russia’s far-east, Amur’s Kun-Manie project and ICG’s Malmyzh copper gold deposit in Khabarovsk Krai are close enough to consider a jointly-owned processing plant.
The AIM-listed group is currently planning a treatment facility next to the Baikal-Amur Magistral railroad that would have access to hydro-electric power and ready source of transportation.
“Both companies recognise that substantial work is required to complete final evaluation of the metallurgical recoveries, concentrate generation, transport, and development of final saleable products for their individual projects,” the company said in statement.
“Because of the relative proximity of the companies' projects, there may be a substantial benefit in undertaking a collaborative effort in the combined processing of the concentrates, which could identify mutually beneficial options and solutions to both companies' project potential and economics.”
A loose agreement called a letter of intent was signed on Saturday at the Eastern Economic Forum in Vladivostok.
The tie-up, if it delivers a tangible collaboration, may well enhance the economics of Kun-Manie, which is currently the focus of definitive feasibility study.
"Development of a mine presents numerous challenges. A project must be technically and economically viable in its own right,” said chief executive Robin Young.
“As our team works toward completion of our definitive feasibility study in evaluation of Kun-Manie, opportunities arise which could enhance the project through mutual support and participation on a project such as this and in particular to our final treatment of the concentrate.
“We look forward to evaluating the potential synergies between IG Copper and Amur."