?2.5m Placing

RNS Number : 3440D

Amur Minerals Corporation

22 March 2011

 



22 March 2010

Amur Minerals Corporation

(AIM: AMC)

£2.5 million Placing

Amur Minerals Corporation ("Amur" or the "Company"), an exploration and development company focused on Far East Russia, announces that it has it has entered into a subscription agreement to raise £2,500,000 by way of a placing of 25,000,000 ordinary shares (the "Placing Shares") at 10p each to Lanstead Capital L.P. ("Lanstead"), an institutional investor.

The funds are being raised for general working capital purposes and to undertake and accelerate additional exploration and engineering works at Kun-Manie, the Company's main nickel copper exploration project.

Highlights:

·    Placing of 25,000,000 ordinary shares at 10p to raise £2,500,000

·    Proceeds further enhance the Company's cash position and will allow additional exploration and engineering works at Kun-Manie, Amur's main nickel exploration project

·    The Company has received more than 230% of the expected amount from prior Lanstead placings without issuing any additional shares.

 Robin Young, CEO Commented:

"We are very pleased with the continued support of Lanstead, an existing shareholder.  The funds from this Placing and the prior Lanstead settlements will provide increased flexibility and allow us to accelerate and undertake additional exploration and evaluation at Kun-Manie.   The application for the nickel copper mining licence at Kun-Manie is currently under review and the Company has provided additional unsolicited information to the Ministry of Economic Development, members of the Duma and government agencies in Amur Oblast.  We look forward to further updating shareholders in due course."

Placing

25,000,000 shares will be issued to Lanstead Capital L.P., an institutional investor, at 10p per share, for an aggregate subscription price of £2,500,000.

In addition, the Company has entered in an Equity Swap Agreement with Lanstead that will allow the Company to retain much of the economic interest in the shares issued to Lanstead.  The Company will issue a further 2,500,000 shares to Lanstead as a value payment in connection with the Equity Swap Agreement.  The Company has also agreed to pay Lanstead a fee of £50,000 within 90 days of Admission of the Placing Shares which the Company may elect to settle by the issue of a further 500,000 new Ordinary Shares.  The Agreement allows the Company to secure much of the potential upside arising from near term news flow.  

The Equity Swap Agreement provides that the Company's economic interest will be determined and payable in 24 monthly settlements as measured against a Benchmark Price of 13.33 pence per share.  If the measured share price exceeds the Benchmark Price, for that month, the Company will receive more than 100 per cent of the expected monthly settlement.  There is no upper limit placed on the additional proceeds receivable by the Company as part of the monthly settlements.  Should the share price be below the Benchmark Price, the Company will receive less than 100 percent of the expected monthly settlement.  In no case would a decline in the Company's share price result in any increase in the number of ordinary shares received by Lanstead or any other advantage accruing to Lanstead. 

The Company's previous Equity Swap Agreements with Lanstead have been advantageous for the Company in allowing the Company to further benefit from positive news flow and to date have provided the Company with more than 230% of the expected monthly settlement payments without the Company issuing any additional shares. 

The structure of this placing is designed to provide the Company with additional ongoing flexibility in conducting near term work while releasing results as they develop as well as maintaining a constant source of funds covering a substantial part of the Company's longer term cash flow requirements.

The total number of 27,500,000 shares subject to this announcement represents 9.88 per cent of the existing issued share capital of the Company as enlarged by the issue of the Placing Shares and the value payment to Lanstead.  Following the admission of these shares to trading on AIM, the Company will have 278,362,112 shares in issue.  The mid market price of an ordinary share at the close of business on 18 March 2010 (being the latest practicable day prior to the publication of this announcement) was 11.25p.  

It is expected that Admission of the shares will become effective and trading will commence on 1 April 2011.  The Placing Shares will, when issued and fully paid, rank pari passu in all respects with the Company's existing shares, including the right to receive any dividend or other distribution thereafter declared, made or paid.

Enquiries:

Company Amur Minerals Corp.	Nomad and Joint Broker RBC Capital Markets	Joint Broker Hybridan LLP	Public Relations Lothbury Financial Services
Robin Young	Martin Eales	Claire Noyce	Michael Padley
[phone]	[phone]	[phone]	[phone]

Notes to Editors

For further information about Amur, please visit the Company's website at www.amurminerals.com.

 

END

 

 

LISUAVNRASAOUAR