Business
Acquisition Of Oxus Assets
Acquisition Of Oxus Assets.
About this update from Kazera Global Plc
[{"type":"text","content":"\n KazakhGold Group Ltd\n26 April 2007\n\n\n\n26 April 2007\n\n\n\n\n\n KAZAKHGOLD ANNOUNCES\n\n ACQUISITION OF THE OXUS GOLD ASSETS\n\n\n\n\n\nFollowing its announcement on 12 March 2007, KazakhGold Group Limited (LSE: KZG)\nis pleased to announce that it has signed a Sale and Purchase Agreement with\nOxus Gold PLC (LSE: OXS) to acquire the following assets from Oxus Resources\nCorporation, a wholly owned subsidiary of Oxus:\n\n\n\n• The entire issued share capital of Norox Mining Company Limited which,\nvia its 66.67% holding in the Talas Gold Mining Company, owns the substantially\ncompleted gold processing plant at the site of the Jerooy gold project in Talas,\nKyrgyzstan.\n\n\n\n• The remaining 50% of the issued share capital of Romaltyn Limited,\nwhich KazakhGold acquired jointly with Oxus in November 2006.\n\n\n\nAs part of the transaction, KazakhGold will also acquire a 25% interest in Hatay\nMadencilik SA and the right to an option relating to the Karakilise copper\ndeposit licence in Turkey, currently owned by Oxus 86% owned subsidiary,\nMarakand Minerals Limited (LSE: MKD)\n\n\n\nAs consideration for the acquisition of these assets, KazakhGold will issue\n3,541,666 new shares to Oxus, representing approximately 7% of the enlarged\nshare capital of KazakhGold following the issue of the consideration shares. The\nconsideration, i.e. number of shares, will not be subject to adjustment to\nreflect fluctuations in the KazakhGold share price.\n\n\n\nAdditionally, KazakhGold has agreed that a further US$80 million in cash will be\npayable to Oxus within 30 days of KazakhGold acquiring, or acquiring the benefit\nof, a licence to mine the Jerooy gold deposit in Kyrgyzstan and commencing\ndevelopment or production at Jerooy. Any such payment is conditional, inter\nalia, on Oxus ceasing its claim against the Kyrgyz government regarding the\nJerooy license.\n\n\n\nThe acquisition will complete upon the delivery of the appropriate title\ndocuments, including the share certificates and transfer documents in respect of\nthe assets by Oxus in exchange for the KazakhGold Shares. Completion is expected\nto occur on or about 15 May 2007.\n\n\n\nExecutive Chairman, Kanat Assaubayev, commented on the announcement:\n\n\n\n'We are very pleased with completing the acquisition of assets from Oxus Gold.\nThis transaction will allow us to c...