Business
Andash project update
Andash project update.
About this update from Shearwater Group Plc
[{"type":"text","content":"\n RNS Number : 7278Z Aurum Mining PLC 28 September 2009 \n \n\n\n\n\nFor Immediate release\n\n\n28 September 2009\n\n\n\n\n\nAURUM MINING PLC\n('Aurum' or 'the Company')\n\nAndash Project Update\n\nAurum Mining plc (AIM: AUR) is pleased to announce that, further to its announcement on 30 June 2009, Kentor Gold (Kentor) has notified the Company that, in accordance with the terms of the existing Memorandum of Understanding between Aurum and Kentor ('the MOU'), it wishes to extend the option period it has to acquire Aurum's stake in the Andash project and the associated mining fleet. Under the terms of the MOU, Kentor's option period will now be extended for another three months until the end of the calendar year.\nIn return for the Company extending the option period, Kentor will pay Aurum US$300,000 by the end of September 2009.\nThe components of the payment are made up as follows:\n\n\n$150,000 in consideration for the extension of the options\n\n\n$150,000 as a deposit payment that will be off-settable from the final purchase price once the deal is finalised. \n\n\nIn a further development, Kentor has announced that it has now completed the financial, technical and legal due diligence on Andash and has confirmed that their process has yielded no significant issues and their work has concluded that the project is both economically robust and technically feasible. \n\nWith the due diligence completed, the Board of Kentor has also given approval for the conditional exercise of the options to purchase the project, subject to suitable funding being arranged and confirmation from the Kyrgyz government that it does not wish to take up its 'first refusal' right to acquire the project. Once these have been obtained, it is anticipated that Kentor will then exercise the options, conditional only upon the necessary approvals from the Aurum and Kentor Shareholders.\n\nKentor expects that the formal notifications from the Kyrgyz government will be received imminently, clearing the way for the exercise of the options. \n\nThe disposal of the Andash assets under the call option agreements would constitute a fundamental change in business (as defined by the AIM Rules) and will be subject to approval by Aurum's Shareholders should Kentor ...