Amur Minerals Corporation (LON:AMC) told investors it has received the fourth quarter interest payment from its investment in privately owned company Nathan River Resources (NRR).
The group received US$164,768 of interest on the US$4.67mln convertible loan note investment made to NRR, for the restart of the Roper Bar iron ore project, in Australia’s Northern Territory.
This is the first full quarter interest payments, following the resumption of production at Roper Bar in October 2020.
The project is producing as a direct shipping ore (DSO) operation, via an offtake deal with Glencore, and benefits from integrated ‘pit-to-port’ logistics.
NRR is advancing Roper Bar in a staged strategy with the first comprising 4mln tonnes of DSO and 1mln tonnes of dense media separation (DMS) production – set to yield 1.5 to 1.8 mln tonnes per annum over three years.
Stage 2 is envisaged to include the installation of a silica flotation plant with a target production of 4 to 5 million tonnes per annum of lump, fines and concentrate.
Amur’s loan note investment allows the AIM-quoted firm to take a 13.43% stake in NRR, by conversion.
Amur’s chief executive Robin Young noted that the project’s restart has come as its economics have been boosted.
“The Nathan River Resources’ Roper Bar Iron Ore Operation has benefitted from the more than 50% run-up in iron ore prices during 2020,” Young said in a statement.
“Despite the Covid-19 pandemic, iron ore availability to maintain China’s continued and robust steel demand has and is projected to provide strong price support for the iron ore industry over the course of the next year. This setting indicates the likely existence of a ready market for the Roper ores,” he added.