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Amur Minerals to sell Kun-Manie nickel project for US$105mln

Amur Minerals Corporation (AIM:AMC, OTC:AMMCF) has entered into a share purchase agreement for the sale of the Kun-Manie nickel project for US$105mln. The divesture price represents premiums of 220% to the company’s market capitalisation on 5 May 2022 and 330% to the current Kun-Manie book value of US$24.4mln, as at 30 June 2021.   The transaction requires shareholder approval, which will be requested at a meeting scheduled for 25 May 2022. It also requires the approval by a newly created Russian Federation government commission per Order 81 dated 1 March 2022 which specifically addresses change of control of western held assets, and the consent of the Federal Antimonopoly Service of Russia. The consideration will be paid in stages. Amur intends to use the proceeds from the initial US$15mln payment obtained on completion for an acquisition via a reverse takeover within six months.  It is anticipated that portions of the second and third payments totaling US$60mln will be paid as dividends to the shareholders. “I am delighted to announce the proposed sale of Kun-Manie to Stanmix Holding Limited for the total consideration of US$105mln, representing a cash consideration of US$75 million over four years and a further US$30 million over 10 years commencing in 2027,” said Amur’s chief executive Robin Young.  “The total consideration represents a 220% premium to the Company’s market capitalisation on 5 May 2022 and a 330% premium to the Kun-Manie book value. Additionally, Amur recently engaged with independent advisers with respect to the valuation of Kun-Manie which indicates that US$105 million is a fair and reasonable price for the project.” Stanmix Holding Limited is a company controlled by Vladislav Sviblov, a Russian entrepreneur and shareholder in a number of mining and industrial assets, including Highland Gold, one of the largest gold miners in Russia. He has also completed a number of major Russian mining transactions. Young also pointed out that significant further investment is still required to get Kun-Manie up and running, including significant expenditure on infrastructure and access roads.