8th Jul 2009 07:00
8 July 2009 Kryso Resources plc (`Kryso' or `the Company') £477,500 Raised Under Equity Placing Agreement
- A further £477,500 raised under Equity Placing Agreement (`EPA') with Orbis Equity Partners for issue of 9,550,000 new ordinary shares
- A total aggregate of £727,500 raised under the first and second tranches of the EPA
- Proceeds to be utilised for the Pakrut gold project bankable feasibility study, which is targeted for completion before the end of 2009, and for continuing drilling at Pakrut
Kryso Resources plc, the mineral exploration and development company with gold and nickel-copper projects in Tajikistan, is pleased to announce that placing commitments have been received in respect of a further £477,500 under the EPA with the Company's co-broker Orbis Equity Partners Limited. These funds are in addition to the £250,000 previously announced as having been raised under the EPA.
As part of this fundraising Dr. Trevor Davenport, Non-Executive Chairman and acting Managing Director of Kryso, has subscribed for £20,000 worth of shares under the EPA and Andrew Malim, a Non-Executive Director of the Company, has subscribed for £50,000 worth of shares, bringing the total numbers of shares held by each of them to 550,000 and 1,000,000 respectively, being 0.44% and 0.81% respectively of the Company's enlarged issued share capital.
The terms of the EPA, which were announced on 28 May 2009, provide for gross proceeds of up to £1.5 million. The initial fundraising of £250,000 under the EPA was announced on 8 June 2009. New ordinary shares issued under the EPA are priced at 5p per share, and warrants are granted to subscribers on the basis of one warrant for each new ordinary share subscribed. The warrants are exercisable at a price of 8p per share at any time for a period of 24 months from the date of the EPA.
As announced on 28 May 2009, Great Basin Gold Limited (`GBG') has agreed to convert its £500,000 convertible loan. This conversion will complete at the same time as the issue of the second tranche placing under the EPA. GBG's loan will be converted into 10,723,389 ordinary shares, bringing the total holding held by GBG and its associated companies to 24,124,724, representing 19.52% of the Company's enlarged issued share capital.
Application will be made for 20,273,389 shares (representing the shares subscribed for under the second tranche of the EPA and the GBG loan conversion) to be admitted to trading on AIM in connection with this announcement, with admission expected on 22 July 2009. No such application will be made in respect of the warrants.
Trevor Davenport, Non-Executive Chairman and acting Managing Director of Kryso Resources plc, comments:
`This further fundraising gives Kryso additional cash resources to forge ahead with the bankable feasibility study on the Pakrut project, which we expect to complete before the end of the year, whilst at the same time maintaining the momentum of ongoing drilling at Pakrut.'
About the Pakrut Gold Project
A bankable feasibility study for the Pakrut gold project based on a mining operation producing in excess of 100,000oz Au per annum with cash costs of approximately US$300/oz Au is currently in progress, and is targeted for completion before the end of 2009. First gold production at Pakrut is targeted for 2011. An internal pre-feasibility study was completed in early 2008, with highly positive results. Estimated cash costs under the internal pre-feasibility study were US$291/oz Au.
The Pakrut gold project's total JORC Code-compliant resources comprise: resources of 21,383,902t estimated across Ore Zones 1, 2, 3 and 7 at an average grade of 2.53g/t for 1,739,029oz Au, assuming a cut-off grade of 0.5g/t; and resources of 5,015,285t estimated across Ore Zones 5, 6, 7, 14 and 16 at an average grade of 1.52g/t for 245,243oz Au, assuming a cut-off grade of 0.5g/t. Total contained gold is therefore estimated to be 1,984,272oz Au.
Total JORC Code-compliant resources of 13,412,109t at an average grade of 2.71g /t for 1,167,789oz Au, assuming a cut off grade of 0.5g/t, fall into the JORC Measured and Indicated categories.
The total resources of the Pakrut gold project under the Russian classification system stand at 26,211,495t at an average grade of 2.44g/t for 2,055,047oz Au, assuming a cut-off grade of 0.5g/t. This includes total reserves of 14,910,748t at an average grade of 2.65g/t for 1,257,454oz Au, assuming a cut-off grade of 0.5g/t.
For further information please contact:
Dr. Trevor Davenport/Craig Brown, Kryso Resources plc. Tel:020 7371 0600
Roxane Marffy, Ruegg & Co Ltd.Tel:020 7584 3663Christian Dennis, Orbis Equity Partners Ltd.Tel:0203 137 1902Jason Bahnsen, Fox-Davies Capital Ltd.Tel:020 7936 5200
vendorRelated Shares:
CNG.L