Amur Minerals AMC today announces that Dimitry Medvedev, the Russian Premier has signed the long awaited exploration and production licence for AMC’s huge Kun Mani project in Amur Province in far East Russia. The shares started rising early this morning before AMC issued its RNS, after news of the grant appeared in the Russian Media. So far today the shares have risen by 67% and now stand at 17p, having closed yesterday at just under 12p. The licence is for a period of 20 years.
The full text of the RNS is as follows;
Kun-Manie Production Licence Awarded
100% Production Rights
Amur Minerals Corporation (“Amur” or the “Company”), the exploration and development company focused on base metal projects located in the Far East of Russia, is delighted to report that the Government of Prime Minister Dmitry Medvedev has approved the Company’s “Detailed Exploration and Mine Production Licence” for its Kun-Manie nickel copper sulphide deposit. The new 36 square kilometre licence is valid until December 2034.
The decision by the Russian Government marks the successful completion of the production licence award process for a strategic deposit. Conclusion of the process enables the Ministry of Natural Resources (“MNR”) and Rosnedra to issue the “Detailed Exploration and Mine Production Licence” per the directive of the Russian Government. Upon registration of the final document, the Company has 30 days to submit its payment of 23.6 million Rubles (approximately $480,000) to officially complete the transaction. The licence grants our wholly owned subsidiary ZAO Kun-Manie the rights to recover all value from the mineral defined to be present at Kun-Manie.
· The Russian Government has approved the Company’s application for mining rights at Kun Manie and issued the directive granting the production rights to the Company until 2034,
· The Company holds 100% of the rights and is entitled to recover all economic value minerals including nickel, copper, cobalt, platinum, palladium, and other minor minerals,
All drilled mineralisation (841,000 nickel tonnes equivalent) lies within the limits of the production licence, and
· Upon receipt of the licence and as agreed in the Terms and Conditions, the Company will compensate the Government with a one-time payment of 23.6 million Roubles (approximately US$480,000).
The award of the “Detailed Exploration and Mine Production Licence” is a major milestone and initiates a new phase for the Company. The strategy of the Company can now shift from exploration to that of pre-production. Over the course of the licence award process, additional engineering work and planning has been implemented by our staff and independent consultants and will be useful in future assessment and design of the operation.
In anticipation of the award, our ZAO Kun-Manie team has already completed a “Project” (Proekt) document defining the plans and activities necessary to advance Kun-Manie to a producing operation. Submission of the programme sets out a work plan in accordance with the Terms and Conditions of the licence. Typically, companies await the final award of a production licence before completing such documentation, however by undertaking this effort in advance of the actual award, the Company will be able to register its detailed exploration plan, allowing it to take advantage of this upcoming field season and further advance the potential of Kun-Manie on a more accelerated basis. The exploration programme will define additional resources and reserves and in-fill drilling will be implemented to define the extent of the Proven and Probable reserves.
The Terms and Conditions of the licence, as negotiated with Rosnedra, set out the responsibilities of the Company to maintain the production rights in good standing. Broadly, the key points address the specifics of the following:
· The one-time payment to be made within 30 days of licence registration in the sum total of 23,610,272 Rubles (approximately $480,000).
· Annually reporting to mineral resource agencies by 15 January.
· Regular environmental monitoring requirements are included.
· Detailed exploration plans are to be provided to appropriate agencies
· Additional work related to metallurgy and engineering studies will be compiled in a final permanent TEO (Russian feasibility study) to be approved by the GKZ (State Reserves Committee), including additional results for detailed exploration.
· The detailed exploration “Project” has been drafted by the Company and will require approval by the regional authorities. It establishes the basic parameters and volumes of work for the next phase of development, in preparation for the start of production.
The newly defined boundaries of the approved 36 square kilometre “Detailed Exploration and Production Licence” are summarized below. An illustration of the production area and the former exploration licence can be viewed using the hyperlink:
Robin Young, CEO of Amur Minerals Corporation, commented:
“Today we have the distinct privilege of announcing to our shareholders that we are embarking on a new and exciting phase at the Kun-Manie nickel sulphide project with the granting of the 20 year “Detailed Exploration and Mine Production Licence”. As we prepare for the detailed exploration, engineering and subsequent production stages of the project, we express gratitude to our team in Russia and the UK, to the Russian Government for their support of the Company’s efforts, and to our shareholders, many of whom have been steadfast over the years in their belief that Kun-Manie is a highly substantial asset with a great future. We are pleased with the licence terms and conditions, which we agreed with the Government, and note that the authorities give considerable leeway to advance the project as quickly and efficiently as possible. On behalf of the Board of Amur, thank you for your unwavering support. We look forward to taking up the next phases of pre-production and development.”
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