Amur Minerals Corporation (AIM:AMC, OTC:AMMCF) said in its full-year results statement that the geopolitical situation in Ukraine has radically altered its strategy for 2022.
Russia’s “special military operation” in Ukraine has yet to affect the company’s operational activities in Russia but it has substantially altered activities related to its mergers & acquisitions strategy.
The 2022 strategy may require rapid adjustments depending on the actions of various nation-states and the Russian Federation, Amur said; however, one aspect of its strategy will remain unchanged from 2021, and that is maintaining 100% of the production rights at its flagship asset at Kun-Manie.
Production approval for the Kun-Manie project requires approvals based on Russian protocols and cannot be obtained on "western standard" feasibility, definitive or bankable studies, Amur explained.
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Amur's primary objectives for 2022 include the completion of the TEO Project and continuing the acquisition of all necessary information for the commencement of the mining plan and the required incumbent study work.
Work will continue at a level allowing for the compilation of bankable feasibility studies. Given that a mining operation within Russia requires Russian sourced and certified work to obtain operational permits and access, the initial focus is on the generation of a Russian bankable study. A follow-on compilation of a hybrid western bankable study is also planned. This hybrid study will include the Russian study work with necessary considerations to allow for the document to support external Russian funding sources.
Amur said it would also continue to pursue the sale of the Kun-Manie project and expects the most likely buyer will be a Russian entity.
In the event of a sale happening, Amur would become a cash shell. In anticipation of a sale, Amur is examining the acquisition of projects, particularly within more favourable mining jurisdictions.
As at the end of 2021, the company had cash reserves of US$6.68mln, up from US$2.79mln a year earlier, and remains debt-free.
Administrative expenses in 2021 fell to US$1.79mln from US$3.08mln in 2020, contributing to a narrower loss of US$1.79mln compared to a loss of US$2.67mln in 2019.