Amur Minerals Corporation (AIM:AMC, OTC:AMMCF, FRA:A7L) said its “principal objective” was working towards the full registration of its reserve, compilation of its operational design and the conversion of the Russia-based work for incorporation in a western Bankable Feasibility Study (BFS).
The BFS would then provide the “necessary technical, environmental and economic detail” to secure funding for the construction of the Kun-Manie nickel copper sulphide project in Russia’s far east.
“The BFS is itself a considerable undertaking and the Amur team has been working on the detailed planning and costing of the BFS programme. This has required considerable interaction with both Russian and international organisations qualified in compiling both Russian and western BFS level work,” investors were told.
In conjunction with the development of the feasibility work, Amur said it had also been “keeping discussions open” with potential offtake partners, funding sources and governmental infrastructure support agencies.
“It is the company's belief that the successful completion of a binding offtake agreements will provide access to institutional investors providing financing options for BFS programme and any associated work,” Amur added.
The company’s permanent conditions, or TEO report, was submitted to the authorities in August.
It put the Russian B + C1 reserve for Kun-Manie at 144mln ore tonnes containing 1.1mln tonnes of nickel and 304,00 tonnes of copper. The potential mine life is 25 years at 11.2mln tonnes a year.
The commentary came alongside Amur’s interim results which showed the group posted an operating loss of US$1.15mln for the six months ended June 30. It finished the half with cash reserves of US$1.85mln and shortly after received US$6.1mln from Hamilton Investments for the sale of its subsidiary Carlo Holdings Ltd.