Amur Minerals Corporation (LON:AMC) continues to push the Kun Manie mine project closer to ‘bankable’ status with the key Russian TEO report now said to be “very nearly complete”.
Technical studies produced for the TEO – the Russian equivalent of a feasibility study – will feed directly into the next step, the mine’s bankable feasibility study (BFS).
In today’s interim results statement, the company noted that it has already been working with Russian and international organisations to advance key elements of the BFS, including detailed planning and costings for the BFS programmes. It highlighted that it has also been keeping discussions open with potential offtake partners.
“It is the company's belief that the successful completion of a binding offtake agreement will provide access to the types of institutional investors who provide financing for BFS programmes,” the company said.
“We envisage that this funding will be principally through debt and would be sufficient to fund the BFS programme and sustain the company's activity through to the completion of the BFS.”
At the same time, Amur said it continues to progress its interest in a newer venture in Australia, the Roper Bar iron ore project, where the operator is Nathan River Resources (NRR).
“We look forward to keeping shareholders updated on the activities of NRR, whose management team we have got to know well over the last few months and have impressed us with their knowledge, experience and attention to detail,” it added.
NRR is on track to make their first shipment in October, Amur noted.
In terms of financials, the company confirmed it ended the half with US$831,000 of cash reserves and remains debt free. Multiple interim fundings were facilitated during the period and, more recently, since the end of June it has raised a further £682,450 as already issued share warrants were exercised.
The mine developer reported a US$1.51mln loss for the six-month period.
Operations highlights for the first half included the completion of an independent hydrological assessment which confirmed there is a ‘more than sufficient’ water supply for the project.
It also completed a rock mechanics study that confirmed open pit and/or underground operations can be successfully implemented at the site. Metallurgical test work meanwhile confirmed that individual copper and nickel sulphide concentrates can be generated using standard industry sulphide floatation methods.
A baseline environmental assessment was also completed.