Business
Re Potential Acquisition
Re Potential Acquisition.
About this update from Shearwater Group Plc
[{"type":"text","content":"\n Aurum Mining PLC\n13 December 2005\n\n\nFor immediate release 13 December 2005\n\n\n\n AURUM MINING PLC\n ('Aurum' or 'the Company')\n\n Re potential acquisition of majority stake in Geocentr\n\n\nAurum Mining plc (AIM: AUR), the company formed last year to acquire gold and\nother mineral extraction projects in the Former Soviet Union (FSU), announced on\n29 October 2005 that it had entered into a conditional agreement with Loyal\nWealthy Limited ('Seller') to purchase 51 per cent of the issued share capital\nin Open Joint Stock Company Geocentr ('Geocentr'), a Russian company that owns\nan exploration licence in the Russian Far East. Further to that announcement,\nAurum announces today that the acquisition of Geocentr has not completed within\nthe conditional agreement's terms and therefore will not proceed.\n\nAurum is disappointed that it was not possible to complete the acquisition but\nthe Company will continue to focus on its existing asset in the Kyrgyz Republic,\nwhere the exploration potential has increased as described in an exploration\nupdate announced on 6 December 2005. The Company will also continue to pursue\nits strategy of seeking further acquisitions in the FSU, with the objective of\ncreating a portfolio of gold and other mineral assets.\n\nAs part of the conditional agreement entered into with Geocentr's Seller, it was\nagreed that if the acquisition did not complete then the benefit of an\noutstanding loan of $170,000 to Geocentr would be assigned to Geocentr's Seller.\nAs the acquisition has not completed, this loan will be reassigned.\n\n\nMark Jones, Aurum Mining's Chief Executive, said: 'Geocentr represented an\ninteresting exploration opportunity and the Board is disappointed that the\nacquisition could not proceed but it is critical that we select only projects\nthat meet our stringent criteria. Meanwhile, we continue to be excited by our\nAndash gold and copper project in the Kyrgyz Republic, which is both increasing\nin exploration potential and moving closer towards production.'\n\n\n\nFor further information:\n\nAurum Mining plc Tel: 020 7478 9050\nSean Finlay, Chairman\nMark Jones, Chief Executive\n\nW H Ireland Tel: 0121 616 2101\nTim Cofman\n\nBuchanan Communications Tel: 020 7466 5000\nMark Court/Amy Rajendran\n\n\n\n\nNotes for editors\n\nAbout Aurum Mining\n\nAurum Mining joined the AIM m...