2.07 million GBP Financing Complete

RNS Number : 2124H

Amur Minerals Corporation

25 May 2011

 



25 May 2011

Amur Minerals Corporation

(AIM: AMC)

Lanstead Capital LLP Financing Nets 2.07 Million GBP

Amur Minerals Corporation ("Amur" or the "Company"), an exploration and development company focused on Far East Russia, announces that it has closed an early settlement for the equity swap agreement entered into with Lanstead Capital LLP ("Lanstead") in July 2010 ("Lanstead 1").  This has allowed the Company to realise on an accelerated basis total proceeds of GBP 2.07 million, which is more than double the original placing proceeds of GBP 0.89 million.  Fees related to the transaction have been included in the reported values.  The details of Lanstead 1 were as follows:

·    On 23 July 2010, the Company announced it had entered into Lanstead 1, an equity swap agreement over a total of 20 million shares at the same time as completing a placing of shares to Lanstead.

·    On 20 October 2010, the Company announced that it had amended the agreement expanding the equity swap agreement by an additional 7.06 million ordinary shares in conjunction with an additional placing to Lanstead.

·    The projected funding less fees available to the Company totalled GBP 0.89 million.  Settlements were to be received over a period of 24 months ending August 2012.

·    A substantial increase in the share price after completion of the placings and agreement allowed the Company to accelerate the settlement schedule, thereby obtaining a substantially higher cumulative per share value than planned.

·    The cumulative Lanstead 1 amount per share realised averaged 7.67 pence compared to the original 3.30 pence per share placing amount, and total funds paid by Lanstead including the original placing proceeds were 232% of the amount planned.  These reported values are net of all fees related to the transaction.

The acceleration of the settlements has resulted in a substantial increase in cash reserves whilst the Company continues its efforts to obtain its mining licence and to undertake the upcoming 2011 field season.

A second equity swap agreement with Lanstead ("Lanstead 2"), announced on 22 March 2011, in conjunction with a placing of 27.5 million shares to Lanstead completed at the same time, remains in place allowing Amur to continue to benefit from future share price appreciaton over the subsequent 24 months.

Robin Young, CEO of Amur Mineral Corporation stated;

"The additional influx of monies enables Amur to advance the project through additional sampling, metallurgical testwork, engineering and refinement of the drill programme planned for 2012.  The metallurgical and engineering work will focus on optimisation of the project and assist in defining the final design of the Kun-Manie project."

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

 

 

MSCSEMFILFFSEDI