26th Apr 2007 15:48
Oxus Gold PLC26 April 2007 Oxus Gold plc Oxus sells Kyrgyz, Romanian and Turkish interests to KazkhGold LONDON: 26 April 2007 - Following its announcement on 12 March 2007, Oxus Goldplc ("Oxus" or the "Company") (OXS.L) is pleased to announce that it has signedan agreement with KazakhGold Group Limited ("KazakhGold") (KZG.L) for the saleof the following assets: - its 100% interest in Norox Mining Company Limited. Norox owns 66.67% of Talas Gold Mining Company in Kyrgyzstan; - its 50% interest in Romaltyn Limited; and - a 25% interest in Hatay Madencilik SA and the right to an option relating to the Karakilise copper deposit licence in Turkey, currently owned by Oxus 86% subsidiary, Marakand Minerals Limited; (together the "Sale Assets"). As consideration for the purchase of the Sale Assets, Oxus will receive3,541,666 new ordinary shares in KazakhGold (currently valued at approximately$82 million) ("KazakhGold Shares"). In addition deferred consideration of up to$80 million is payable in cash within 30 days of KazakhGold acquiring, oracquiring the benefit of, a licence to mine the Jerooy gold deposit inKyrgyzstan and commencing development or production at Jerooy. The initialconsideration represents approximately 7% of the enlarged share capital ofKazakhGold. The sale will complete upon the delivery of the appropriate title documents,including the share certificates and transfer documents in respect of the SaleAssets by Oxus in exchange for the KazakhGold Shares. Completion is expected tooccur on or about 15 May 2007. Oxus intends to convert the non-trading KazakhGold Shares into tradeable globaldepositary receipts ("GDRs") and to deposit them into KazakhGold's GDRprogramme. KazakhGold GDRs trade on the London Stock Exchange, with one GDRrepresenting one share. As previously announced, Oxus intends to distribute all or a large portion ofthe KazakhGold GDRs by way of a dividend. For those Oxus shareholders who may beprohibited from receiving the GDRs due to US securities legislation, it isintended that a cash alternative will be offered. Further details regarding thedividend will be supplied to shareholders in due course. Bill Trew, CEO of Oxus, commented "We are delighted that we were able to reachan agreement so quickly and we now look forward to completing the transaction.We believe this transaction represents a very positive outcome for ourshareholders, particularly as it will enable them to benefit from any positivedevelopments at Jerooy. We also look forward to returning value to ourshareholders by way of dividend. The Company will continue to focus onincreasing its gold production at Amantaytau Goldfields in Uzbekistan and toevaluating other opportunities as they arise." Further enquiries: Oxus Gold plcRichard Wilkins Tel: +44 (0)20 7907 2000website: www.Oxusgold.co.uk Bankside Consultants Ltd.Keith Irons/Oliver Winters Tel: +44 (0)20 7367 8873 Canaccord Adams Limited Mike Jones/Erin Needra Tel: +44 (0) 7050 6500 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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