LONDON (Alliance News) - Tengri Resources PLC said Friday that it will be charged USD389,687 by Robust Resources Branch in relation to expenditures incurred in the Kyrgyz Republic, under a services agreement between the two companies.
Under Kyrgyz legislation, some operations must be undertaken by a Kyrgyz entity, Tengri said, and under this services agreement Tengri can use Robust Branch's status as a Kyrgyz entity to undertake operations and payments in relation to employment matters without establishing a Kyrgyz branch office.
As such these costs were incurred by Robust Branch on Tengri's behalf. As Robust Branch is part of the same group as Robust Resources Ltd, which owns a 87.3% stake in Tengri, this payment is considered a related party transaction under AIM rules.
Shares in Tengri Resources were down 12% at 2.20 pence Friday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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