Amur Minerals Corporation (LON:AMC), the exploration and development company focused on base metal projects located in the Far East of Russia, has today reported that its executive management and key local staff have completed a series of meetings with various State and Federal agencies of the Far East Region. The meetings have been held with regards to infrastructure requirements for the Company’s Kun-Manie nickel copper sulphide deposit in the northeast of the Amur Oblast.
These meetings are the first to be completed since the announcement of the Memorandum of Understanding (“MOU”) with Jinchuan Group which was announced on 31 October 2016. In addition, a previously completed financial advisory agreement with the Far East Investment and Export Agency (“FEIE”), continuation of its working relationship with the Far East and Baikal Region Development Fund (“Fund”) in a Heads of Terms and a Letter of Intent (“LOI”) with IG Copper have also been completed and are key to our ongoing discussions relating to infrastructure development at Kun-Manie.
The agreements provide the Company with a series of alternatives to the development of the project which are now under consideration related to the infrastructure. On a standalone basis and directly related to the Company’s Kun-Manie project, a 320 kilometre long road from the mine site to the Baikal Amur Rail Line (“BAM”) is required.
The Company also has three options available to its treatment of the Kun-Manie concentrate. These include:
· Toll treatment of part or all of concentrate by a contract smelting company (likely to be located in China),
· Construction of an owner operated concentrate treatment facility, alongsidethe BAM to treat Kun-Manie concentrate only, or
· To construct a concentrate treatment facility with excess capacity allowing the Company to treat other companies sulphide concentrates.
The available concentrate treatment options require unique considerations in design of the infrastructure with regard to transportation via road and rail and the access to power. With the newly established agreements, infrastructure development requires specific investigation to identify the most beneficial financial option for the Company.
Key participants to the meetings included the Governor of Amur Oblast (Mr. Aleksandr Kozlov), the Deputy Head of the Government, State Ministers and additional staff of the state and regional ministries including that of Natural Resources, Amurnedra, Transport, Forestry and Economic Development. Also, meetings with representatives of the Russian Rail system were held.
Mr. Robin J Young, CEO of Amur Minerals Corporation stated: “The continued support and input from the multiple Russian agencies at all levels is a key aspect to the successful development of our Kun-Manie project. We have been and continue to remain focused on maintaining a long term relationship which is mutually beneficial to all participants in both the public and private sectors. The support from these agencies is invaluable as the project moves forward toward production.”