5 Jul 2012 07:00
5 July 2012
Legendary Investments Plc
("Legendary" or the "Company")
Investment in Energy Asset
Legendary is pleased to announce that it has invested £100,000 in cash into Kyrgyzstan based Manas Minerals LLC ("Manas Minerals"). Manas Minerals owns the Padsha Ata Licence to mine for coal in the Chatkal Ridge in the Asksy region of Jalal-Abad, Kyrgyzstan. Existing Soviet surveys suggest that the region contains 182 million tonnes of coal reserves of which 116 million are in the P1 and P2 categories according to the Russian standard for resource reporting.*
An internationally recognised firm of consultants has been engaged to confirm the Soviet surveys. A specialist engineering firm is carrying out a works program on Padsha-Ata. This program includes profiling, trenching, drilling and the improvement of site access, and is expected to be completed later this year. The results of qualitative studies conducted to date indicate the coal to be of high calorific value, with energy values in excess of 25 MJ/kg and low ash and sulphur content.
The intention is to seek further licences in the region, certain of which have already been identified, and combine them into a single combine. Jalal-Abad is strategically located within in 200 km of the Chinese border.
Legendary's investment is by way of a convertible loan note which when converted is expected to result in Legendary having a 1.0% stake in Manas Minerals. In addition, Legendary has an option with an exercise price of £50,000 which upon exercise would result in Legendary having an additional 0.5% stake in Manas Minerals or equivalent thereof in any successor entity.
Value crystallisation is expected through the capital markets in the next 12 months or so.
Contact: | ||
Legendary Investments Plc | Zafar Karim / Rajesh Rai / Thomas Reuner
| 020 8201 3536 |
Grant Thornton Corporate Finance
| Colin Aaronson/ Melanie Frean
| 020 7383 5100 |
Simple Investments | Nick Emerson/ Andrew Thacker | 01483 413500 |
* These resources may be classed as "historic" and are not directly equivalent to Western resources estimates (CRIRSCO, JORC etc). However, when verified by check drilling and sampling the P1 resources would probably be equivalent to Inferred Resources whilst P2 would probably correspond with an Exploration Target.