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The Markets
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General mining & base metals

Amur Minerals expects buyer of Kun-Manie will be a Russian entity

Amur Minerals has a huge undeveloped nickel sulphide deposit in Russia

What it does

Amur Minerals Corporation (LON:AMC) is a junior mining exploration company that holds assets in Russia.

The company is run by long-standing chief executive Robin Young, who spends much of his time in Russia. Other directors also boast long years of experience in the mining industry.

The principal asset is the Kun-Manie nickel deposit in the Amur Oblast of Russia’s Far East. This project is one of the world’s last remaining unexploited nickel sulphide deposits, and also contains significant amounts of copper.

As it stands the JORC resource rings in at 155.1mln tonnes of ore grading 1.02% nickel equivalent for a total nickel equivalent tonnage of 1.58mln tonnes.

How it's doing

Kun-Manie is the main focus and is going through the Russian permitting process ahead of work starting on a bankable feasibility study.

In late August, the company announced a deal to invest in NRR – owner and operator of the Roper Bar iron ore mine, in Australia’s Northern Territory - via a subscription of convertible loan notes.

The notes carry an annual coupon of 14% and can convert into equity, equivalent to 19% of NRR present share capital.

The investment funds were earmarked for a rapid restart of the mining operation, which yields direct shipping ore (DSO).

There were some 194,000 tonnes of DSO stockpiled on-site and available for shipping from October.

In April, Amur said it received an interest payment for the first quarter of 2021 based on its US$4.67mln convertible loan note investment to Nathan River Resources (NRR) to resume production at the Roper Bar iron ore project in Australia’s Northern Territories.

The payment of US$161,206 had already been received, the Russia-focused mineral exploration and resource development company said.

During the past quarter, three vessels were loaded and departed for China bringing the total number of shipments from Roper Bar to five since the implementation of the loan note investment, which has a coupon of 14% and is convertible to a 13.43% stake in NRR in August 2023.

What the boss says: Robin Young

“The Nathan River Resources' Roper Bar Iron Ore Operation continues to benefit from the sustained price increase of more than 50% run-up in iron ore during 2020.

"Despite the Covid-19 pandemic, iron ore availability to maintain China's continued and robust steel demand has and is projected to provide strong price support for the iron ore industry over the course of the next year. This setting indicates the likely existence of a ready market for the Roper ores,"

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