Amur Minerals Corporation (AIM:AMC, OTC:AMMCF) said if the agreed disposal of its Kun-Manie nickel project in Russia completes as planned, it will move forward as a cash shell.
Following receipt of the consideration of US$35mln, the company confirmed that intends to pay a special dividend of 1.8p per share, within 90 days of completion.
As at the end of June, there was cash of US$5.3mln in the bank, down from US$6.7mln at the start of 2022, with no debt.
The AIM-listed outfit said its directors intend to seek to find a suitable company or business for a reverse takeover, which would require shareholder approval.
“The board, in considering the company's future strategy, it will seek to identify opportunities offering the potential to deliver value creation and returns to shareholders over the medium to long-term in the form of capital and/or dividends,” non-executive chairman Robert Schafer said in statement alongside the company’s interim results.
A condition of the sale and purchase agreement on 8 August was that the consents all needed to be obtained within 90 days of signing.
Amur said it expects all regulatory consents will be obtained in time.
The company noted that the buyer is Bering Metals, a Russian incorporated company controlled by Vladislav Sviblov.
Sviblov is a Russian entrepreneur, top-manager, investor and main shareholder of some major mining and industrial assets, including Highland Gold Mining, one of the largest gold miners in Russia.
Administration expenses for the first half of the year totalled US$1.7mln, up from US$1.1mln a year earlier, which Amur said was caused by an increase in legal fees in connection with the Kun-Manie sale process and a claim against the company.
There was a currency translation loss of US$8.5mln following the strengthening of the Russian rouble to the US dollar, while expenditure on exploration was US$0.3mln.
The exploration asset balance was transferred to 'non- current assets held for sale'.