Business
Grant of options re Andash di
Grant of options re Andash di.
About this update from Shearwater Group Plc
[{"type":"text","content":"\n RNS Number : 7349U Aurum Mining PLC 30 June 2009 \n \n\n\n\n\n\n\n\n30 June 2009\n\n\n\n\n\nAURUM MINING PLC\n('Aurum' or 'the Company')\n\nGranting of options to facilitate the disposal of the Andash asset and the ancillary mining fleet.\n\nIn line with its key stated objective to deliver Shareholder value from the Company's Andash asset in the Kyrgyz Republic, the Aurum Board is delighted to announce that it has granted options to facilitate the disposal of both its 80% interest in the Andash gold-copper mining project ('Andash') and its ancillary assets, consisting mainly of a mining and construction fleet. The options have been granted to ASX listed gold mining company, Kentor Gold Limited ('Kentor'). \n\nIf the options are exercised, Aurum will realise US$10m from its 80% stake in the Andash project and a further US$5m for its share of the ancillary assets.\n\nAs a further component of the proposed deal, and once the initial options have been exercised, Aurum will acquire a 10% stake in the Andash project from its local partner for consideration of US$1.2m. The net effect of the deal, if all options are exercised, will therefore be that Aurum will receive US$13.8m in cash and it will retain a 10% stake in the Andash project. The shareholders in the project post the transaction would be Kentor with 80%, Aurum with 10% and Aurum's local partner with 10%.\n\nThe options are valid for an initial period of three months but can be extended for a further three months at the discretion and mutual agreement of both Kentor and Aurum.\n\nThe key terms of the option transactions are as follows:\n\n\n\nKentor will pay Aurum US$100,000 for an initial exclusive 3 month option to purchase Aurum's 80% interest in the Andash Mining Company and separately Aurum's owned fleet of mining and construction equipment. \n\n\nAurum will not unreasonably withhold a 3 month extension to the options for a second payment of US$150,000. If a second three month option is granted, Kentor will also pay Aurum a $150,000 deposit which will be off-settable from the final purchase price once the deal is finalised.\n\n\nKentor is permitted to exercise the option to acquire the Andash asset independently of the option to acquire the mining fleet but no...