Business
Settlement of claims against the Assaubayev family
Settlement of claims against the Assaubayev family.
About this update from Kazera Global Plc
[{"type":"text","content":"\n \nRNS Number : 6991G KazakhGold Group Ltd 16 May 2011 \n \n\n\n\n\n\nFor immediate release\n\n\n16 May 2011\n\n\n\n\n \nSettlement of claims against the Assaubayev family\nFollowing the announcement by KazakhGold Group Limited (\"KazakhGold\") on 11 April 2011 that it had entered into a settlement deed in connection with the conditional settlement of the proceedings brought by KazakhGold against members of the Assaubayev family and certain of their affiliates (the \"Settlement Deed\") and the Restated and Amended Principal Agreement with AltynGroup Kazakhstan LLP (\"AltynGroup\") (the \"RAPA\"), the Board of Directors of KazakhGold announces that:\n \n· the conditions to the effectiveness of the Settlement Deed have been satisfied, including amongst others the issuance to KazakhGold of an irrevocable documentary letter of credit in the amount of US$100,000,000 (as described below) (the \"LOC\") and the receipt of the approval from the Ministry of Industry and New Technologies of the Republic of Kazakhstan (\"MINT\") to the proposed combination of KazakhGold with OJSC Polyus Gold (\"Polyus Gold\"); and\n \n· MINT has granted its approval for the sale by KazakhGold's subsidiary, Romanshorn LC AG, of 100% of the shares in Kazakhaltyn MMC JSC to Altyngroup Holdings K.F.T., an acquisition vehicle of AltynGroup.\n \nLetter of Credit (\"LOC\")\n \nThe LOC, which was issued in favour of KazakhGold by an independent bank in the amount of US$100,000,000 is available to be drawn in accordance with the terms and conditions of the RAPA (which were described in the announcement made by KazakhGold on 11 April 2011). In particular, subject to certain conditions, the US$100,000,000 may be drawn to partially fund the consideration due at the First Tranche Completion of the sale of the shares in KazakhGold's subsidiaries to AltynGroup (or its nominee) (the \"First Tranche Completion\"), by no later than 12 September 2011 (the \"First Tranche Cut-Off Date\"), or, to the extent the First Tranche Completion does not occur, depending on which conditions to First Tranche Completion are not satisfied, KazakhGold will be able to draw on the LOC and apply the proceeds as follows:\n \n· &n...