Amur Minerals Corporation Sale of Subsidiary (0850E)
July 05 2021 - 1:00AM
UK Regulatory
TIDMAMC
RNS Number : 0850E
Amur Minerals Corporation
05 July 2021
5 July 2021
Amur Minerals Corporation
("Amur" or the "Company")
Sale of Subsidiary
Amur Minerals Corporation, a nickel-copper sulphide mineral
exploration and resource development company which possesses a
wholly owned nickel sulphide asset located in the far east of
Russia, is pleased to announce the sale of its wholly-owned
subsidiary Carlo Holdings Limited ("CHL") for a cash consideration
of US$6,137,019 pursuant to a share sale agreement entered into on
3 July 2021 with Hamilton Investments Pte. Ltd., a subsidiary of
Britmar (Asia) Pte Ltd ("Brit Mar"). Completion of the sale will
take place immediately.
CHL holds the Amur group's investment of US$4.67 million in
secured convertible loan notes ("CLNs") in Nathan River Resources
Pte Limited ("Nathan River Resources") which owns the Roper Bar
Iron Ore Project located in the Northern Territory in
Australia.
Amur acquired CHL on 28 August 2020 for a cash consideration of
GBP1, and immediately provided the funding whereby CHL subscribed
for the CLNs with a principal amount of US$4.67 million issued by
Nathan River Resources. The CLNs have a 14% coupon, paid quarterly,
and are convertible at the holder's option at any time from issue
until 15 days prior to their maturity date on the third anniversary
of issue. Any CLNs not converted by the third anniversary of issue
are redeemable at par.
As per the original agreement between CHL and Nathan River
Resources, Nathan River Resources has the right to buy back the
CLN's in advance of the maturation of the CLN's on 28 August 2023
by repayment of the US$4.67 million in principle and all
outstanding unpaid interest through to the expiration of the notes
(the interest covers the period from 1 April 2021 through to 28
August 2023). Amur is now selling CHL for US$6,137,019,
representing a profit of US$1.47 million when set against its
original investment, albeit foregoing the interest that would
otherwise be payable over the lifetime of the CLNs. In the year
ended 31 December 2020, CHL audited profit after tax was US$215,000
and gross assets were US$4,883,450. The consideration is payable in
cash and will be settled by Hamilton Investments Pte. Ltd.
immediately.
The Company intends 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. Amur also announces that Mr Adam Habib, President of
Amur, has left the Company.
Robin Young, CEO of Amur Minerals Corporation, commented :
"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. This substantial increase is and should be
beneficial to the Nathan River Resources operation. Brit Mar's
purchase of our interest in Nathan River Resources and its Roper
Bar iron ore mine also comes as no surprise.
"Onboarding of US$1.47 million in interest and the repayment of
the US$4.67 million principal used to purchase the Convertible Loan
Notes in one lump sum cash transaction instead of quarterly derived
US$160,000 quarterly interest payments through to 28 August 2023 is
highly beneficial to Amur. Especially when one views it from a time
value of money aspect. Our cash reserves are now US$8.9 million,
having increased from US$2.8 million. Completion of this
transaction excludes any equity dilution."
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014, as it forms part of UK law by virtue
of the European Union (Withdrawal) Act 2018, until the release of
this announcement.
Enquiries:
Company Nomad and Broker Public Relations
Amur Minerals Corp. S.P. Angel Corporate Blytheweigh
Finance LLP
Robin Young CEO Richard Morrison Megan Ray
Adam Cowl Tim Blythe
+44 (0) 20 3470
+7 (4212) 75 56 15 0470 +44 (0) 20 7138 3204
For further information, and Company updates see the Company
website at www.amurminerals.com and twitter page @
amur_minerals.
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