12th Sep 2013 13:59
LONDON (Alliance News) - Oxus Gold PLC Thursday said its losses narrowed in the first half, but management remained focused on trying to secure compensation from the Republic of Uzbekistan for assets it claims were taken from it illegally.
The exploration-based gold mining company, which had a 50% interest in the Amantaytau Goldfields, said its pretax loss narrowed to USD1 million in the six months to June 30, from USD3.1 million a year earlier.
However, the figures are of little importance as the company no longer has any assets and doesn't make any revenue.
The major portion of management's time during the past six months has continued to be taken up progressing arbitration proceedings and seeking compensation for the loss of its Amantaytau Goldfields and Khandiza mining assets.
The company went to international arbitration proceedings in August last year, seeking damages of about USD400 million, after Uzbekistan government-backed companies initiated an audit of Amantaytau goldfields. Oxus alleges the audit was set up to find reasons to justify the liquidation of Amantaytau.
Oxus said it remains extremely confident that it will be awarded appropriate compensation by the Arbitration Tribunal for both the Amantaytau Goldfields and Khandiza investments in Uzbekistan.
With the loss of operations, its administrative expenses almost halved to USD452,000 from USD806,000. It has paid a total of USD3.32 million in legal fees for the litigation, which have been funded by a Litigation Funding Agreement it entered into on February 29.
Oxus shares were down 0.1 pence, or 5.86%, at 1.52 pence Thursday
By Tom McIvor; [email protected]; @TomMcIvor1
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