Business
Acquisition of Mineral Assets
Caspian Sunrise plc has entered into a conditional agreement to acquire 100% of Kazikhan Limited, which holds licenses for manganese and gold exploration in Kazakhstan, for an initial consideration of $25 million, satisfied by issuing new shares at 5p each, and a maximum potential consideration of $45 million. The acquisition includes manganese assets with approximately 8 million tonnes of probable reserves and gold assets with 700 kg of C2 gold reserves, though these are not JORC compliant. The transaction is a related party transaction as the sellers are part of a concert party that already owns 50.52% of Caspian Sunrise. The company plans a $4.5 million investment to increase manganese production to 20,000 tonnes per month and a $10 million investment for a gold production facility, to be funded externally. Disclaimer*
About this update from Caspian Sunrise Plc
The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain. Caspian Sunrise PLC ("Caspian Sunrise" or the "Company" and together with its subsidiaries, the "Group") Acquisition of mineral assets Introduction The Board of Caspian Sunrise is pleased to update shareholders with news of the conditional acquisition of significant manganese and gold assets for an initial consideration of $25 million and a maximum consideration of $45 million. For several years the Board has been evaluating opportunities in the minerals sector, which are both attractive in their own right and would also lessen the Group's reliance on the Kazakh oil & gas market, which in recent years has been heavily impacted by Russian sanctions. In comparison to the Group's oil & gas operations, the Board believes the mineral projects they are targeting typically require a lower level of initial investment; are faster to become cashflow positive; are expected to have fewer regulatory delays; are less affected by the impact of Russian sanctions; and where the end customers for the minerals produced typically pay international prices. The Group has conditionally acquired 100% of the shares of Kazikhan Limited ("Kazikhan"), a company registered in Kazakhstan's Astana International Financial Center, which holds the shares of a group of companies, which in turn hold licences to explore for minerals being principally manganese and gold, but also silver, copper and molybdenum (the "Acquisition"). Kazikhan's subsidiary GRK Borly LLP ("Borly") has a licence to explore for and produce manganese with state confirmed probable reserves of approximately 8 million tonnes under the new Kazakh Resource Code (KAZRC), a CRIRSCO-style code. Kazikhan's subsidiary Zhambas PV ("Zhambas") has a licence to explore for gold and copper with existing state confirmed C2 gold reserves of 700 kg under ...
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