Business
New Framework Agreement for 100% Kounrad Project
New Framework Agreement for 100% Kounrad Project.
About this update from Central Asia Metals Plc
[{"type":"text","content":"\n \nRNS Number : 9608H Central Asia Metals PLC 27 June 2013 \n \n\n27 June 2013\nCENTRAL ASIA METALS PLC\n(\"CAML\" or the \"Company\")\n \nNew Framework Agreement for 100% of the Kounrad Project \nCentral Asia Metals plc (AIM:CAML), a copper producing company focussed on base metals in Central Asia, is pleased to announce a new framework agreement for the acquisition of the remaining 40 per cent. of the Kounrad Copper Project in Kazakhstan (the \"Kounrad Project\" or \"Kounrad\") (the \"Acquisition\"). \nThe Kounrad Project is currently operated by two subsidiaries of CAML. CAML Kazakhstan BV (\"CAML BV\") is the 60 per cent. owner of Kounrad Copper Company LLP (\"KCC\"), which is the operator of the SX-EW facility, and Sary Kazna LLP (\"SK\") is the 60 per cent. holder of the Subsoil Use Contract (\"SUC\"), which conducts the dump leach operations.\nThe new framework agreement supercedes the previous agreement which was entered into with JSC SAT & Company(the \"SAT Group\") as announced on 2 February 2012.\nHighlights\n· Acquisition to result in CAML owning 100 per cent. of Kounrad; including all revenues and production\n· Acquisition to be effected by the transfer of the 40 per cent. ownership interest in the Kounrad Project from Central Asian Investment Consulting Company LLP (\"CAICC\"), a subsidiary of the SAT Group, to Mr Kenges Rakishev; then a subsequent transfer of the 40 per cent. interest to CAML's subsidiaries\n· CAML expects to receive the transfer of the remaining 40 per cent. ownership interest (the \"KCC Interest\") in Kounrad Copper Company LLP (\"KCC\") to its wholly owned subsidiary CAML BV by the end of Q3 2013. KCC is the main revenue generating company for the Kounrad Project\n· Completion of the Acquisition (including the SUC) (\"Completion\") is targeted by the end of 2013 with a longstop date of 31 March 2014\n· On Completion, CAML will issue 21,211,751 ordinary shares in the capital of the Company (\"Ordinary Shares\") to Mr Rakishev (representing 20 per cent. of the post-Acquisition enlarged share capital) (the \"CAML Shares\") as well as a cash payment of up to £904,120 in lieu of any dividends \n· Mr Rakishev to be appointed as a Non-Ex...