Amur Minerals shares dipped 1.5% to 1.3p in early morning trading on Friday, after the mining firm reported the intended disposal of its Kun-Manie subsidiary to Russian company Bering Metals.
The deal is set to complete as a cash shell in line with Rule 15 of the AIM rules. Following its receipt of the $35 million consideration, Amur Minerals will pay a 1.8p per share dividend to shareholders within 90 days of finalisation.
The board reportedly seeks to acquire another company, which will acquire shareholder approval, and which it will need to complete within six months of its Kun-Manie disposal or be re-admitted to AIM as an investing company.
Failing that, Amur Minerals shares will be suspended from trading on AIM, after six months of which the company’s shares will be cancelled.
“The board, in considering the company’s future strategy, it will seek to identify opportunities offering the potential to deliver value creation and returns to shareholders over the medium to long-term in the form of capital and/or dividends,” said non-executive chairman Robert Schafer said in statement.
Amur Minerals confirmed cash reserves of $5.3 million from $6.7 million at the start of 2022. The group remains debt free, and received £300,000 from the issue of share capital upon the execution of warrants.
The company highlighted administration expenses for HY1 2022 of $1.7 million against $1.1 million the last year, linked to a rise in legal fees related to its Kun-Manie disposal and claim against the group.
Meanwhile, Amur Minerals noted a currency translation loss of $8.5 million against $400,000 due to the strengthening of the Russian rouble to the US dollar.
The mining group mentioned $300,000 in expenditure on exploration compared to $400,000.
