AMUR MINERALS CORPORATION
("Amur" or the "Company")
RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015
CHAIRMAN'S STATEMENT
I am pleased to be able to present this update of Amur Minerals Corporation (the "Company") to
shareholders in what was a significant year for the Company with the issuance of the "Detailed Exploration and Production
Licence" (the "Production Licence") on our Kun-Manie sulphide nickel copper project. Occuring in our 10th year since
the Company listed on AIM, our successful acquisition of 100% of the production rights of the project has been the result of a
decade of hard work and dedication by our staff. We have also defined a Blueprint for the compilation of a Definitive
Feasibility Study ("DFS") for development of the 20 year Production Licence for our world class nickel copper sulphide
project.
In these 10 years we have seen many challenges ranging from successful identification of
additional resources bringing our total contained nickel equivalent to nearly a million tonnes whilst working our way through the
often chaotic markets and an ever changing Russian regulatory environment. In recent years, the mining sector's prominence
on the Alternative Investment Market ("AIM") and commodity markets have declined and the period has been fraught with economic
uncertainty creating a highly constrained funding environment for the junior miners. With this setting, we have remained
highly focused and successful in discovering one of the largest nickel copper sulphide deposits, obtaining the rights to extract
100% of the contained metals from a Russian strategic deposit, identified various technical and financial options to optimise
what could lead to our becoming one of the top 10 nickel miners in the world, and still have highly prospective undrilled ground
within our production licence area. All of this has been attained through the support of all shareholders that have taken a
long-term investment perspective.
2015 Highlights
· Obtaining a Production Licence with the
right to recover 100% of the contained metals
· Obtaining a water allotment licence to
support the processing of ore
· Completed nearly 6,000 metres of diamond
core drilling
· Compiled resource updates at four of our
five deposits resulting in a substantial expansion of the global resource statement
· Completed internal evaluations and trade
off studies leading to the development of a Blueprint setting a path to the completion of a DFS
· Acquisition of Capital Equipment to allow
for a more rapid advance of our field work
· Company remains debt free and has
established a funding source allowing us to fast track Kun-Manie
Licencing
On 22 May 2015, the Ministry of Natural Resources and Rosnedra issued the Production Licence
covering a 36 square kilometre licence area at Kun-Manie which is valid until 1 July 2035. The Production Licence was registered
with the State Geological Fund in June 2015 and a one-time payment of 23.6 million Roubles made, granting our wholly owned
subsidiary ZAO Kun-Manie 100% of the production rights for all economically recoverable metals including nickel, copper, cobalt,
platinum, palladium, gold and silver. Being a strategic deposit, the 100% grant was a substantial accomplishment as
production licences for strategic deposits typically allow for a foreign company to hold no more than 25% of the production
rights.
This was quickly followed by approval of the Company's project development plan for the continued
detailed exploration and development of Kun-Manie. Our dedicated staff had prepared a comprehensive package of documents and were
ready to complete the submission as soon as the Production Licence was registered which allowed the Company sufficient time to
undertake a planned 6,000 metre drill season in 2015. The drill effort was focused on our largest deposit known as Maly
Kurumkon / Flangovy ("MKF").
Additionally, in May 2015 the Company obtained a 112 square kilometre water allotment adjacent to
the planned mill site area located to the south of our Production Licence. Examination of the allotment area has been commenced
as a part of the 2016 field season and will consist of various geophysical surveys and the identification of water well drill
sites to identify the sources from which water can be drawn to process ore and to provide potable water for nearly 1,000 onsite
employees once production is brought on line.
The Far East and Baikal Region Development Fund (the "Fund")
Looking to the long-term funding requirements related to the need for infrastructure development
to support the Kun-Manie project, in August 2015 the Company signed a Financial Advisory agreement with the Fund which allows us
to work in partnership with the Fund in attracting financing from within the Russian Federation, Republic of India and the
Peoples Republic of China. Our collaboration with the Fund is a major step forward for the Company and confirms the Russian
Government's commitment to generating growth and business opportunities in the Russian Far East and we are pleased to be an
integral part of this development programme. The Fund is a lead institution in funding infrastructure development of key
cornerstone projects in the Far East.
2015 Field Season
We planned and prepared for drilling of up to 6,000 metres at the MKF deposit with the primary
objective being the infill drilling of a large block of Inferred ore located in the eastern area of the deposit called Flangovy.
The intent was to convert Inferred resources to that of the Indicated category thereby increasing the potential reserve base
suitable for the determination of JORC compatible reserve statements. A second and substantial objective of the programme
included the completion of two step holes to confirm that the Flangovy deposit extended beyond the last known limits of
mineralisation. Both goals were successfully accomplished and verified with the final analytical results being derived by
Alex Stewart Laboratories reported in Q4 2015 and Q1 2016.
During the 2015 season 19 infill and 2 step out holes were completed with a total of 5,821 metres
being diamond core drilled. The infill programme doubled the drilling density at Flangovy and as it required fewer metres than
was expected this allowed us the opportunity to undertake additional infill drilling in the Maly Kurumkon area of the deposit for
the purpose of confirming the continuity along strike of the previously defined 60 metre thick lense of mineralisation. The step
out holes extended the mineralisation at Flangovy by an additional 400 metres to the east of the previously determined ore
limits. The potential for further expansion of the resource eastward remains open and represents a substantial target for future
exploration drilling.
By doubling the density of the drill spacing and step out expansion, the MKF resource was expanded
from 52.9 million ore tonnes containing 294,200 nickel tonnes and 85,100 tonnes of copper to that of 90.6 million tonnes of ore
containing 366,600 tonnes of nickel and 109,900 tonnes of copper. Nearly 78% of this newly defined resource is now
classified as an Indicated resource which was double that defined prior to the completion of the 2015 drill programme. In
addition, a thick, continuous, and high grade (+0.75% nickel) mineralised core was identified to extend over a distance of 1,700
metres. The presence of the structure has provided us with the opportunity to mine higher grade ores than previously considered
possible and to increase production of higher grade ores earlier in the production cycle of the mine life.
SGS Minerals Metallurgical Test Work
During the year, we also had the opportunity to compile additional metallurgical test work samples
for establishing grade recovery curves previously not available. Six samples each from the deposits Kubuk and Flangovy were
collected covering various grade intervals to determine the variability of the metallurgical recoveries of the contained metals
based on increasing grade content. The results of this work have been received from SGS Minerals ("SGS"). The final
combined results for previous work and the newly acquired results will provide additional key information and significantly
assist in the development of the mine production schedule to generate the best concentrate for the recovery of the
metal.
Internal Evaluation and Blueprint
During the first half of the year an 'Operational Blueprint'
was developed internally which looked at an optimised mining, processing and transport
conceptual design, providing for a fully integrated operation that will produce a substantially improved financial assessment for
Kun-Manie. By doing so, a series of trade off studies were identified wherein each step of the proposed operation could be
optimised. In June 2015, the Operational Blueprint and the associated economic evaluation were completed and presented as a
Preliminary Economic Assessment ("PEA"). It was from this evaluation and its accompanying trade off analyses that provided
us with a benchmark plan for the DFS which serves as our planning document for the compilation of the final configuration of the
mine site operation, development of road and power infrastructure and the potential construction of our own furnace to generate
an intermediate Low Grade Matte ("LGM") for direct sale into the three largest nickel consumptive Asian countries including
China, India and Korea.
Resource Inventory Update
In a post 2015 event, the Company contracted SRK Consulting (UK) Ltd ("SRK") to update the
resource statement for MKF using a modified resource calculation method reflecting two mineralised geological environments suited
to allow for both open pit and underground mining considerations and trade off analyses between the two mining
alternatives. As a result, low grade (0.20% nickel cutoff grade) and high grade (0.5% nickel cutoff grade) domains were
successfully identified and modelled separately. This method will allow us to develop an appropriate mine reserve statement
in the near future including both open pit and underground production scenarios. Being the largest deposit in our five
deposit inventory, reserve definition will begin with MKF wherein an optimised production schedule to be generated as an integral
part of the DFS.
The successful implementation of the newly defined estimation process implemented initially at
MKF, lead the Company to investigate the potential successful application of the method for use at the deposits of Ikenskoe /
Sobolevsky ("Iken") and Kubuk. Results allowed us to identify the presence of the two unique mineral domains. Results derived in
the Q2 2016 process resulted in a substantial refinement to the resource models and related statements which should allow for the
development of a reserve that will be more reflective of a combined open pit / underground producing mine and suitable for use in
the development of a DFS mine reserve and optimised production schedule. The current resource statements by deposit follow in the
table below and it is noted that the total contained nickel presently stands at 740,100 tonnes with copper being 212,900 tonnes.
By-product platinum and palladium total 20.6 tonnes and 21.7 tonnes, respectively. In combination, the nickel equivalent is
nearly a million tonnes placing it among the world's largest nickel sulphide deposits.
JORC Resource Estimate - April 2016
|
(zero cutoff grade)
|
Orebody
|
Tonnage
|
Ni
|
Ni
|
Cu
|
Cu
|
Pt
|
Pt
|
Pd
|
Pd
|
|
Mt
|
%
|
t
|
%
|
t
|
g/t
|
kg
|
g/t
|
kg
|
Kubuk (Two Geological Domain Model)
|
Measured
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Indicated
|
3.7
|
0.76
|
28,500
|
0.17
|
7,300
|
0.1
|
700
|
0.1
|
700
|
Subtotal
|
3.7
|
0.76
|
28,500
|
0.17
|
7,300
|
0.1
|
700
|
0.1
|
700
|
Inferred
|
22.0
|
0.47
|
104,500
|
0.15
|
32,100
|
0.1
|
3,100
|
0.1
|
2,700
|
Total
|
25.7
|
0.52
|
133,000
|
0.15
|
39,400
|
0.1
|
3,800
|
0.1
|
3,400
|
Gorny (Single 0.20% Geological Domain Model)
|
Measured
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Indicated
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Subtotal
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Inferred
|
7.6
|
0.31
|
23,900
|
0.09
|
7,000
|
0.2
|
1,600
|
0.2
|
1,900
|
Total
|
7.6
|
0.31
|
23,900
|
0.09
|
7,000
|
0.2
|
1,600
|
0.2
|
1,900
|
Ikenskoe / Sobolevsky (Two Geological Domain Model -)
|
Measured
|
17.6
|
0.51
|
88,600
|
0.14
|
24,200
|
0.18
|
3,200
|
0.20
|
3,500
|
Indicated
|
11.8
|
0.39
|
46,000
|
0.1
|
11,400
|
0.14
|
1,700
|
0.17
|
2,000
|
Subtotal
|
29.4
|
0.46
|
134,600
|
0.12
|
35,600
|
0.16
|
4,900
|
0.19
|
5,500
|
Inferred
|
5.9
|
0.78
|
46,100
|
0.19
|
11,400
|
0.17
|
1,000
|
0.21
|
1,200
|
Total
|
35.3
|
0.51
|
180,700
|
0.13
|
47,000
|
0.17
|
5,900
|
0.19
|
6,700
|
Vodorazdelny (Single 0.20% Geological Domain - Open Cast Target Only)
|
Measured
|
0.8
|
0.57
|
4,700
|
0.17
|
1,400
|
0.3
|
200
|
0.3
|
200
|
Indicated
|
4.8
|
0.66
|
31,200
|
0.17
|
8,200
|
0.1
|
600
|
0.1
|
600
|
Subtotal
|
5.6
|
0.64
|
35,900
|
0.17
|
9,600
|
0.1
|
800
|
0.1
|
800
|
Inferred
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Total
|
5.6
|
0.64
|
35,900
|
0.17
|
9,600
|
0.1
|
800
|
0.14
|
800
|
Maly Krumkon / Flangovy (Two Geological Domain Model)
|
Measured
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Indicated
|
68.4
|
0.42
|
285,200
|
0.12
|
84,200
|
0.1
|
6,600
|
0.1
|
6,900
|
Subtotal
|
68.4
|
0.42
|
285,200
|
0.12
|
84,200
|
0.1
|
6,600
|
0.1
|
6,900
|
Inferred
|
22.2
|
0.37
|
81,400
|
0.12
|
25,700
|
0.1
|
1,900
|
0.1
|
2,000
|
Total
|
90.6
|
0.40
|
366,600
|
0.12
|
109,900
|
0.1
|
8,500
|
0.1
|
8,900
|
|
|
|
|
|
|
|
|
|
|
Global Total Resource
|
Measured
|
18.3
|
0.51
|
93,300
|
0.14
|
25,600
|
0.19
|
3,400
|
0.20
|
3,700
|
Indicated
|
88.7
|
0.44
|
390,900
|
0.12
|
111,100
|
0.11
|
9,600
|
0.11
|
10,200
|
Sub-total
|
107.1
|
0.45
|
484,200
|
0.13
|
136,700
|
0.12
|
13,000
|
0.13
|
13,900
|
Inferred
|
57.7
|
0.44
|
255,900
|
0.13
|
76,200
|
0.13
|
7,700
|
0.14
|
7,800
|
Grand Total
|
164.8
|
0.45
|
740,100
|
0.13
|
212,900
|
0.12
|
20,700
|
0.13
|
21,700
|
Numbers may not be precise due to rounding.
Capital Purchases
Towards the year end and after the award of the Production Licence and approval of the Project
Plan, we took the decision to invest in an additional new drill rig and other mobile fleet so that we could significantly
increase our drilling capacity and onsite activities during the 2016 and 2017 field seasons. This was intended to enable us to
undertake combined field season activities of resource definition, bulk metallurgical sample collection and definition of the
hydrological scheme to support the processing of our ores for inclusion of the DFS.
We took delivery of a Boart Longyear LF-90, two Caterpillar D9Rs dozers and a Caterpillar 329D
excavator in late Q4 2015 and early Q1 2016. These were then transported to the project site over the winter ice road opened in
March 2016 with the new equipment arriving on site in early April 2016. I would like to express my great thanks to the personnel
who undertook the 2016 ice road construction and delivery hauls, as this was a particularly challenging undertaking as it
encompassed the largest movement of equipment and stocks to site that we have ever undertaken, and the mild winter meant that the
ice road was open for a shorter than usual time.
Typically the field season runs from early June to early November with drilling dependent upon the
availability of free flowing water dictating when we can initiate and complete drilling for the year. The unseasonably warm
winter has allowed us to begin our 2016 field activities and drilling nearly a month earlier than normal.
Financial Overview
The Company remained debt free throughout 2015 with cash reserves of US$9.6 million as at 31
December 2015.
In October 2015, we completed the Lanstead financing agreement that was entered into in July
2013. This agreement provided 24 settlements for a total of US$11.2 million. During the year 21 settlements were finalised
totaling US$10.8 million.
In December 2015, the Company entered into a financing agreement with Crede CG III Limited
("Crede") for £12.5 million with attached warrants spread over 5 subscription events of £2.5 million each at 90 day intervals.
The first subscription event took place in December 2015. The financing agreement with Crede has enabled the Company to fully
finance the DFS at the outset avoiding the need to come back to market for further funding whilst the DFS is in progress. The
Crede financing also ensures the Company is on a sound financial footing should it become involved in discussions or negotiations
with potential long-term partners. Whilst the Board appreciates that there will be significant dilution to existing shareholders
as a result of the Crede financing, we believe it is in the best interests of all stakeholders that your Company is well financed
to enable the Kun-Manie Project to reach its full potential. Other sources of finance were considered by the Board, but dismissed
due to the high cost of funding in relation to the amount being raised and/or uncertainty over the level of funding that could be
achieved.
The Company incurred an operating loss of US$0.7 million (2014: US$1.36 million). Administration
costs for the year were $4.1 million (2014: US$2.4 million) with much of the increase comprising of US$1.1 million of non-cash
charge for options grant. Finance Income of US$3.4 million for the year was earned from the Lanstead financing agreement
completed in October 2015. Also during the year, the Company spent US$2.7 million on capital equipment and exploration
expenses.
Outlook
We go into 2016 squarely focused on the next major milestone, the DFS, which we expect to complete
by the end of 2017. The DFS is a large and important undertaking and its development will consume considerable time and
management focus.
The 2016 field programme contains work key to the completion of the DFS and includes the
completion of 15,000 metres of drilling, which consists of two objectives. The first, and an important 2016 deliverable for the
DFS, is to generate a large representative metallurgical sample from the MKF deposit for use in the process design of the ore
treatment facilities and furnace design to generate a LGM. The second objective is to convert existing Inferred resources at MKF
to Indicated to further expand the potential reserve expansion. Lastly, the Company will compile information to define the
source and quantity of industrial water available to process the ores. This will enable us to define the locations for test wells
scheduled for drilling in 2017.
Other DFS related tasks are planned to commence during 2016 and cover several disciplines related
to off-Production Licence area activities. These include infrastructure assessment and design for power and access road
work, metallurgical work for plant and flowsheet design, evaluation of final concentrate composition, development of the design
of the furnace to generate a LGM, the development of a comprehensive mine reserves, schedule and operational plan and finally the
environmental impact assessment. These activities are closely interlinked and will require our undivided attention.
Lastly, the Company extends its appreciation and thanks to long-term shareholders that have
supported the Company to this point and into the future. Personally, I also wish to thank all parties that have been a part of
the team that has brought us to this exhilarating point. Congratulations and thanks go to our dedicated and skilled staff, the
Russian authorities that were key to processing the Production Licence, our contractors, the UK support staff and the Amur
management team.
Mr. Robert W. Schafer
Non Executive Chairman
28 June 2016
Enquiries:
Company
Amur Minerals Corp.
|
Nomad and Broker
S.P. Angel Corporate Finance LLP
|
Public Relations
Yellow Jersey
|
Robin Young CEO
|
Ewan Leggat
Laura Harrison
|
Dominic Barretto
Harriet Jackson
|
+7 (4212) 755 615
|
+44 (0) 20 3470 0470
|
+44 (0) 7544 275 882
|
AMUR MINERALS CORPORATION AND ITS SUBSIDIARIES
consolidated STATEMENT OF FINANCIAL POSITION
AS OF 31 DECEMBER 2015
(Amounts in '000s US Dollars)
|
|
31 December 2015
|
|
31 December 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS
|
|
|
|
|
|
Capitalised exploration costs
|
|
11,513
|
|
11,783
|
|
Property, plant and equipment
|
|
649
|
|
252
|
|
|
|
|
|
|
|
Total non-current assets
|
|
12,162
|
|
12,035
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
Other receivables
|
|
1,230
|
|
83
|
|
Inventories
|
|
512
|
|
237
|
|
Derivative financial asset
|
|
-
|
|
7,381
|
|
Cash and cash equivalents
|
|
9,613
|
|
1,389
|
|
|
|
|
|
|
|
Total current assets
|
|
11,355
|
|
9,090
|
|
|
|
|
|
|
|
Total assets
|
|
23,517
|
|
21,125
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade and other payables
|
|
539
|
|
407
|
|
Derivative financial liability
|
|
370
|
|
-
|
|
|
|
|
|
|
|
Total current liabilities
|
|
909
|
|
407
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES
|
|
|
|
|
|
Rehabilitation provision
|
|
139
|
|
-
|
|
|
|
|
|
|
|
Total non-current liabilities
|
|
139
|
|
-
|
|
|
|
|
|
|
|
CAPITAL AND RESERVES ATTRIBUTABLE TO OWNERS OF THE PARENT
|
|
|
|
|
|
Share capital
|
|
54,093
|
|
48,949
|
|
Share premium
|
|
5,648
|
|
6,473
|
|
Share options reserve
|
|
3,907
|
|
2,306
|
|
Retained deficit
|
|
(25,869)
|
|
(25,163)
|
|
Foreign currency translation reserve
|
|
(15,310)
|
|
(11,847)
|
|
|
|
|
|
|
|
Total equity
|
|
22,469
|
|
20,718
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
23,517
|
|
21,125
|
|
|
|
|
|
|
|
The financial statements were approved and authorised for issue by the Board of Directors on 28
June 2016 and were signed on its behalf by:
AMUR MINERALS CORPORATION AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE income
FOR THE year ENDED 31 DECEMBER 2015
(Amounts in '000s US Dollars)
|
Year ended 31 December
2015
|
|
Year ended 31 December
2014
|
|
|
|
|
Administrative expenses
|
(4,114)
|
|
(2,358)
|
|
|
|
|
|
|
|
|
Loss from operations
|
(4,114)
|
|
(2,358)
|
|
|
|
|
|
|
|
|
Finance income/ (expense)
|
2,224
|
|
(161)
|
Fair value movement on derivative financial assets
|
1,184
|
|
1,158
|
|
|
|
|
Loss before tax
|
(706)
|
|
(1,361)
|
|
|
|
|
Taxation
|
-
|
|
-
|
|
|
|
|
Loss for the year attributable to owners of the parent
|
(706)
|
|
(1,361)
|
|
|
|
|
|
|
|
|
Other Comprehensive income:
|
|
|
|
Exchange differences on translation of foreign operations
|
(3,463)
|
|
(8,047)
|
|
|
|
|
Other comprehensive income for the year, net of tax
|
(3,463)
|
|
(8,047)
|
|
|
|
|
Total comprehensive income for the year attributable to owners of the parent
|
(4,169)
|
|
(9,408)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share: basic & diluted
|
US$(0.002)
|
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US$(0.003)
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AMUR MINERALS CORPORATION AND ITS SUBSIDIARIES
CONSOLIDATED sTATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2015
(Amounts in '000s US Dollars)
|
Year
ended
31 December 2015
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Year
ended
31 December 2014
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Cash flow from operating activities:
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|
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Payments to suppliers and employees
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(3,090)
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(1,960)
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Net cash used in operating activities
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(3,090)
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(1,960)
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Cash flow from investing activities:
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Payments for property, plant and equipment
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(610)
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-
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Payments for capitalised expenditure
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(2,141)
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(748)
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Net cash used in investing activities
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(2,751)
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(748)
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Cash flow from financing activities:
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Proceeds from issue of equity shares (net of issue costs)
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3,618
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-
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Cash received from derivative financial asset
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10,789
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1,841
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Net cash from financing activities
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14,407
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1,841
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Net change in cash and cash equivalents
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8,566
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(867)
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Cash and cash equivalents at the beginning of the year
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1,389
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2,392
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Foreign exchange effects
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(342)
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(136)
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Cash and cash equivalents at the end of the year
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9,613
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1,389
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AMUR MINERALS CORPORATION AND ITS SUBSIDIARIES
CONSOLIDATED Statement of changes in equity
FOR THE YEAR ENDED 31 DECEMBER 2015
(Amounts in '000s US Dollars)
|
Share capital
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Share
premium account
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Share Options
Reserve
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Retained deficit
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Foreign Currency Translation Reserve
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Total
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Balance at 31 December 2013
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48,949
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6,473
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2,086
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(23,802)
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(3,800)
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29,906
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Loss for the year
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-
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-
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-
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(1,361)
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-
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(1,361)
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Other comprehensive income for the year
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-
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-
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-
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-
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(8,047)
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(8,047)
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Total comprehensive income
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-
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-
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-
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(1,361)
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(8,047)
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(9,408)
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Equity settled share based payments
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-
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-
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344
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-
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-
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344
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Equity settled share based payments associated with issue of shares
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-
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-
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(124)
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-
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-
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(124)
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Balance as 31 December 2014
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48,949
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6,473
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2,306
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(25,163)
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(11,847)
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20,718
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Loss for the year
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-
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-
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-
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(706)
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-
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(706)
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Other comprehensive income for the year
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-
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-
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-
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-
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(3,463)
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(3,463)
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Total comprehensive income
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-
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-
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-
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(706)
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(3,463)
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(4,169)
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Shares Issued
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4,887
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-
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-
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-
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-
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4,887
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Equity settled share based payments
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-
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-
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1,691
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-
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-
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1,691
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Exercise of options
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257
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-
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(90)
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-
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-
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167
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Costs associated with issue of share capital
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-
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(825)
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-
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-
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-
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(825)
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54,093
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5,648
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3,907
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(25,869)
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(15,310)
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22,469
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1. Basis of prePARATION
a) Statement of compliance
The financial statements have been presented in thousands of United States Dollars and prepared in
accordance with International Financial Reporting Standards as adopted by the European Union (IFRS). The principal
accounting policies adopted in the preparation of the financial statements are set out in note 3 to these financial statements.
The policies have been consistently applied to all the years presented, unless otherwise stated.
b) Going concern
These consolidated annual financial statements are prepared on a going concern
basis.
The Group operates as a natural resources exploration and development company. To date, the Group
has not earned significant revenues and is considered to be in the exploration stage. In May 2015 the 20 year 'Detailed
Exploration and Production Licence' was issued to the Company's wholly owned subsidiary, ZAO Kun-Maine. The production licence
expires on 1 July 2035.
The Directors have prepared a cash flow projection for period to December 2017 which indicates
that the Group is sufficiently funded by its current financial resources and the future committed equity financing from Crede for
the next 12 months given the level of contractual commitments. The Directors therefore consider the Group to be a going concern
and have prepared the financial statements on that basis.
c) Loss per share
Basic and diluted loss per share are calculated and set out below. The effects of warrants
and share options outstanding at the year ends are anti-dilutive and the total of 56.6 million (2014: 27.2 million) of potential
ordinary shares have therefore been excluded from the following calculations:
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31 December 2015
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31 December 2014
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Net loss for the year
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(706)
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(1,361)
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Weighted average number of shares used in the calculation of basic loss per
share
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436,576,884
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431,151,344
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Basic and diluted loss per share
|
US$(0.002)
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US$(0.003)
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d) Events after the reporting date
On 1 March 2016 the Company, pursuant to the subscription agreement entered into with Crede CG III
Ltd on 14 December 2015, converted all 17,045,455 warrants held by Crede using the Black-Scholes valuation method applicable to
the agreement, for 22,033,235 new Ordinary Shares.
On 4 March 2016 the Company signed a non-binding Heads of Terms Agreement with the Russian
Government's Far East and Baikal Region Development Fund. The agreement expresses the intentions of Fund and the Company to
expand their collaboration on funding Kun-Manie.
On 17 March 2016 the Company, pursuant to the subscription agreement entered into with Crede CG
III Ltd on 14 December 2015 allotted 32,679,739 new Ordinary Shares at a price of 7.65 pence per share to raise £2.5 million
before expenses. The Company also issued warrants over 24,509,805 ordinary shares.
On 20 June 2016 the Company, pursuant to the subscription agreement entered into with Crede CG III
Ltd on 14 December 2015 allotted 64,102,565 new Ordinary Shares at a price of 3.9 pence per share to raise £2.5 million before
expenses. The Company also issued warrants over 48,076,924 ordinary shares.
Annual Accounts
Copies of the Group's Annual Accounts will be posted to the shareholders today and are available
for download from the Company's website at www.amurminerals.com.
Notes to Editors
The information contained in this announcement has been reviewed and approved by the CEO of Amur,
Robin Young. Mr. Young is a Geological Engineer (cum laude) and is a Qualified Professional Geologist, as defined by the Toronto
and Vancouver Stock Exchanges and a Competent Person for the purposes of the AIM Rules for Companies.
Glossary
DEFINITIONS OF EXPLORATION RESULTS, RESOURCES & RESERVES
EXTRACTED FROM THE JORC CODE: (December 2012) (www.jorc.org)
A 'Mineral Resource' is a concentration or occurrence of material of intrinsic economic interest
in or on the Earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic
extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated
or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated and Measured categories.
An 'Inferred Mineral Resource' is that part of a Mineral Resource for which tonnage, grade and
mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not
verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and
reliability.
An 'Indicated Mineral Resource' is that part of a Mineral Resource for which tonnage, densities,
shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on
exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade
continuity but are spaced closely enough for continuity to be assumed.
A 'Measured Mineral Resource' is that part of a Mineral Resource for which tonnage, densities,
shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on
detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such
as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and/or grade
continuity.
An 'Ore Reserve' is the economically mineable part of a Measured and/or Indicated Mineral
Resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate
assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining,
metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the
time of reporting that extraction could reasonably be justified. Ore Reserves are sub-divided in order of increasing confidence
into Probable Ore Reserves and Proved Ore Reserves.