19th Aug 2009 15:31
19 August 2009 Kryso Resources plc (`Kryso' or `the Company')
495,250 Raised in Final Tranche of Equity Placing Agreement (`EPA') with Orbis Equity Partners
- Proceeds will primarily be utilised for ongoing drilling at the Pakrut gold project and for the Pakrut bankable feasibility study, completion of which is expected before the end of 2009
- Final tranche brings total raised under the EPA to 1,222,750
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 495,250 for the final tranche of the EPA with the Company's co-broker Orbis Equity Partners Limited. These funds are in addition to the 727,500 raised in two previous tranches (please see announcements dated 8 June 2009 and 8 July 2009).
New ordinary shares subscribed for under the EPA are priced at 5p per share, and warrants are granted to subscribers on the basis of one warrant per share. 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. Application will be made for 9,905,000 shares to be admitted to trading on AIM in connection with this announcement, with admission expected on 27 August 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:
`The funds raised under the EPA have enabled Kryso to make strong progress with the Pakrut gold project, where drilling continues. We expect to announce an updated resource estimate for Pakrut in the near future, following the receipt of assay results from the Company's independent assay laboratory SGS Lakefield, and we are aiming to complete a bankable feasibility study for the project before the end of the year.'
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 for the project 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
Brett Miller, Astaire Securities plc.
Tel: 020 7448 4498
Christian Dennis, Orbis Equity Partners Ltd.
Tel: 0203 137 1902
Jason Bahnsen, Fox-Davies Capital Ltd.
Tel: 020 7936 5200
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CNG.L