Asian Mineral Resources (AMR) has announced a significant increase to the resource at its Ban Phuc Nickel Project, with the site now hosting a NI 43-101-compliant indicated and measured 1.7 million tonnes.
This updates the previous 1.2 million tonne massive sulphide resource at the project which is about 160km northwest of Hanoi in Vietnam’s Son La province.
The company’s disseminated sulphide mineral resource decreased in tonnage and increased in grade due to a higher cut-off of 0.90% nickel. The estimate went from a measured and indicated 12.48 million tonnes @ 0.59% nickel and an inferred 7.42 million tonnes @ 0.56% nickel to 0.9 million tonnes measured and indicated @ 1.19% nickel and 0.4 million tonnes inferred @ 1.14% nickel from previous estimates.
Meantime, AMR has taken the first steps in a proposed shareholder offering aimed at raising $12.5 million to fund the development of Ban Phuc. The offering will give AMR shareholders the opportunity to acquire common shares for $0.05 each. The company expects the rights offering will be completed by the end of April.
In connection with the offering, AMR’s largest shareholder, Pala Investments, has agreed to purchase all of the common shares not purchased at the offering’s expiration date.
The development of the Ban Phuc project is in advanced stages, with underground and surface infrastructure near completion and commercial production expected to occur by June 2013.