Amur Minerals Corporation (LON: AMC) have seen their shares jump after the company announced repayment of its convertible loan.
The loan taken was valued at $853,000 and Amur confirmed on Monday afternoon that this had been paid back to Riverfort Global Opportunities PLC (LON: RGO) and YA II PN Ltd.
Shares jumped 13.76% on Monday afternoon to 2p. 18/11/19 14:54BST.
“The investment and support provided by Riverfort since February 2018 enabled Amur to continue the development of the project with the successful completion of the 2018 drill season, and the initiation of our current TEO feasibility study work programme,” said Chief Executive Robin Young.
“The company was also able to complete the acquisition of the bulk samples for metallurgical test work, hydrological and rock mechanic drilling in 2018, all of which form important inputs into the TEO report,” added Young.
Only two weeks ago, Amur Minerals announced that they would raise funds through a share subscription. The firm announced that they would raise £1.2 million in order to pay a segment of the convertible loan that was fully repaid today.
“The fundraise strengthens the company’s financial position as we continue our work on the TEO workstreams, and the follow on DFS, and will update the market with the progress of these various workstreams as and when appropriate,” Chief Executive Officer Robin Young said.
At at time where competitors such as Serabi (LON:SRB) boat strong production figures for their third quarter, this will come as a relief for shareholders.
Additionally, Resolute Mining Limited (LON: RSG) saw bumper fundamentals in the first half of 2019 with their trading update.
There may been long term benefits for investor who stuck with Amur Minerals. Although the firm is still finding its feet in the market, Amur did show its resilient nature in paying off a significant debt.
Shareholders can remain optimistic about future outlook, as this could be a diamond for investors. Amur still has a long way to prove its credentials to both shareholders and the market, however these are steps in the right direction.
