$5m potential buyer6 Oct 2015 09:53
a new conditional exclusivity agreement with David-Invest LLP, a Kyrgyz registered company, and a related company, David Way Limited, a Hong Kong registered company with a view to the potential sale of its Akdjol and Tokhtazan gold exploration licences in Kyrgyzstan.
-- the Potential Buyers have been granted an exclusive right to purchase the Akdjol-Tokhtazan Project until December 31, 2015 (the "Exclusivity Period") conditional upon the Potential Buyers continuing to fund the
costs of maintaining the licence;
-- the Potential Buyers have the option to purchase the Akdjol-Tokhtazan Project at any time on or before the expiry of the Exclusivity Period for a consideration of US$5.0 million. The previous non-refundable deposits of US$400,000 received by the Company during 2014, will be applied against the consideration in the event of any sale;
-- the Potential Buyers will fund the exploration programme for the Akdjol-Tokhtazan Project licences (which are due to expire on December 31, 2015) on a non-refundable basis for the Exclusivity Period; and
-- the Potential Buyers have the right to terminate the Exclusivity Agreement at any time.
Current mcap £3m
Only 183m shares in issue
As at June 30, 2015 the Company had cash and cash equivalents of $6.3 million and estimates to have sufficient working capital to fund it exploration and administration obligations for the next 12 months.
Net assets around $19.6m
Currently well undervalued!!