Explorer Amur Minerals Corporation has entered another equity swap agreement even though it has had mixed experiences with previous deals.
The first equity swap deal with Lanstead Capital was a success but the next two were disappointments because the share price fell and much less was raised from them than had been expected. In 2011 and 2012, Amur received £1.94m less than hoped from these equity swaps.
The latest £5m equity swap agreement with Lanstead is at as nominal placing price of 7.25p a share. Lanstead is also receiving nearly 7m shares in return for the agreement. The benchmark price has been set at 9.75p a share and the cash will be received in 24 monthly tranches. If the quoted price is above that benchmark then Amur will receive more than 7.25p a share for its monthly tranche, but if it is below the benchmark then it will be less than the placing price.
The current share price is 8p, so on that basis the price received for a tranche would be 6p a share. The share price has to rise by 22% for 7.25p a share to be received.
A JORC resource is being finalised for the Kubuk nickel-copper prospect in the Kun-Manie mineralisation zone.
Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJuly2013_46.pdf
© 2022 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.