Exploration and development company Amur Minerals has raised £5.2m through subscription by new and existing shareholders to fund the development of Kun-Manie sulphide nickel, copper project in Russia.
The company said that the funds will be used to continue exploration and advance the Kun-Manie project including the development of an optimized production schedule and the update of the current economic model including all newly acquired technical data and cost information.
In addition, the company will use the funds to conduct additional metallurgical test work, purchase long lead time equipment necessary for the 2014 drill program, and for general and administrative requirements.
Amur Minerals CEO Robin Young said that the latest placing ensures that the company is fully funded to implement its expanded short-term strategy while the final decision of the award of the mining license is being advanced.
"The placing provides access to working capital in a manner that minimises potential dilution to shareholders. The Board expects the summer months to be busy in terms of news flow and looks forward to being able to provide an update soon on progress," Young added.
The Kun-Manie license area is about 950km² and is located 700 km northeast of the city of Blagoveshchensk.
The company commenced seasonal field work on the license in 2004 and has established total measured, indicated and inferred resources of about 341,000 tons of contained nickel and 95,500 tons of copper.