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General mining & base metals

Amur Minerals receives first interest payment from NRR investment

Loan notes have a 14% coupon and the company has been paid for the quarter ended September 30, 2020

Amur Minerals Corporation (LON:AMC) told investors it has received the first interest payment from its Nathan River Resources (NRR) investment.

In late August, the company announced a deal to invest in NRR – owner and operator of the Roper Bar iron ore mine, in Australia’s Northern Territory - via a subscription of convertible loan notes.

READ: Amur raises £6.1mln, snaps up Australian iron opportunity

The notes carry an annual coupon of 14% and can convert into equity, equivalent to 19% of NRR present share capital.

The investment funds were earmarked for a rapid restart of the mining operation, which yields direct shipping ore (DSO). There were some 194,000 tonnes of DSO stockpiled on-site and available for shipping from October.

In all, Roper Bar is estimated to host to an estimated 446mln tonnes of JORC resources with an iron grade of 39.9%. It has around 4.76mln tonnes of JORC reserves at 60.1% iron.

Glencore PLC has been involved in the project and has entered into an offtake deal.