Business
Oxus in principle agreement
Oxus in principle agreement.
About this update from Kazera Global Plc
[{"type":"text","content":"\n KazakhGold Group Ltd\n12 March 2007\n\n\n\n12 March 2007\n\n\n KAZAKHGOLD ANNOUNCES AGREEMENT IN PRINCIPLE TO ACQUIRE CERTAIN OXUS ASSETS,\n BOARD REORGANISATION AND SENIOR MANAGEMENT APPOINTMENTS\n\n\nKazakhGold Group Limited (LSE: KZG) is pleased to announce that it has today\nagreed in principle with Oxus Gold PLC (LSE: OXS) to acquire certain of Oxus'\nassets, subject to contract. These assets include:\n\n\n• The entire issued share capital of Norox Mining Company Limited\nwhich, via its 66.67% holding in the Talas Gold Mining Company, owns the\nsubstantially completed gold processing plant at the site of the Jerooy gold\nproject in Talas, Kyrgyzstan.\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• Certain exploration assets in Turkey, currently owned by Oxus' 86%\nowned subsidiary, Marakand Minerals Limited (LSE: MKD), subject to board\napproval from Marakand.\n\n\nThe proposed acquisition is subject to a number of conditions, including\ncompletion of satisfactory due diligence, the receipt of independent valuations\nof the assets which is satisfactory to the Board of KazakhGold, the receipt of\nall necessary regulatory approvals and consents and subject to completion of a\nlegally binding agreement. In consideration for these assets, KazakhGold\nproposes to issue, upon completion, up to a maximum of 3,541,666 new shares to\nOxus, representing approximately 7% of the enlarged share capital of KazakhGold\nfollowing the issue of the consideration shares. The number of shares issued as\nconsideration will be subject to adjustment if any of the assets above are not\ntransferred to KazakhGold. The consideration, i.e. number of shares, will not be\nsubject to adjustment to reflect fluctuations in the KazakhGold share price\n\n\nAdditionally, KazakhGold has agreed in principle that it will pay Oxus up to a\nfurther US$80 million in cash, payable in instalments, if it is awarded the\nlicence at Jerooy and commences development and production at the deposit. Any\nsuch payment is conditional, inter alia, on Oxus ceasing its ongoing litigation\nregarding the Jerooy license.\n\n\nKazakhGold also announces the following changes to its board structure and\nstrengthening of its management team:\n\n\n• Kanat Assaubayev, currently the ...