Amur Minerals Corp (LON:AMC) said it agreed to sell its subsidiary Carlo Holdings Ltd (CHL) for US$6.14mln in cash.
Amur also announced the departure of its president Adam Habib, but provided no details.
CHL holds Amur’s investment of US$4.67mln in secured convertible loan notes in Nathan River Resources Pte Ltd, owner of the Roper Bar iron ore project in Australia’s Northern Territory.
Completion of the sale to Hamilton Investments Pte. Ltd, a subsidiary of Britmar (Asia) Pte Ltd (Brit Mar), will take place immediately.
"Brit Mar's interest in this transaction is no surprise when you look at the substantial increase of the iron ore price from August 2020 at US$120/t, at the time of our purchase, to the current US$208/t price,” said Amur chief executive Robin Young.
The sale price gives Amur a profit of US$1.47mln when set against its original investment.
Receiving one lump sum instead of quarterly interest payments on the loan notes is highly beneficial to Amur, said Young. “Our cash reserves are now US$8.9mln, having increased from US$2.8mln.”
Amur said it plans to use the sale proceeds to fund the continued development of the far eastern located Kun-Manie nickel copper sulphide project and general working capital, as well as providing a cash reserve with which to consider investment opportunities.
READ: Amur Minerals reports 12% increase in resource estimates at Kun-Manie project