Last checked at 17 Sep 2010 10:11
Kryso Resources plc ("Kryso" or "the Company") Shareholders of China Nonferrous Metals Int'l Mining Co. Ltd. Approve Kryso Subscription Agreement
Kryso Resources plc (AIM: KYS), the mineral exploration and development company with gold and nickel-copper projects in Tajikistan, is pleased to announce that pursuant to the conditional subscription agreement (the "Subscription Agreement") entered into on 27 July 2010 with China Nonferrous Metals Int'l Mining Co. Ltd. ("CNMIM"), notification has been received that the Subscription Agreement has been approved by the shareholders of CNMIM.
Summary Terms of the Subscription Agreement
* Placing ("the Placing") of 73,269,539 new ordinary shares of the Company ("the Placing Shares") to CNMIM at a price of 15p per share to raise approximately £10.99 million before expenses * Conditional on completion of the Placing, CNMIM is to receive one warrant per Placing Share, each warrant entitling CNMIM to subscribe for one further new ordinary share of the Company at 21p per share * Subject to completion of the Placing, CNMIM is to use its best endeavours to procure an offer of debt financing for not less than 70% of the funding required to bring the Pakrut gold project into production * Proceeds of the Placing to be deployed to fund the development of the Pakrut gold project, exploration in the Pakrut licensed area and further exploration at the Hukas nickel-copper project.
Further Information
* The Subscription Agreement and the Placing remain subject to a number of conditions including, inter alia: the passing by Kryso shareholders of resolutions to authorise the board of the Company to allot the Placing Shares and to waive statutory pre-emption rights in respect of such shares at a General Meeting to be convened and held in due course by the Company; and approval by all appropriate authorities in the PRC * The number of Placing Shares is subject to adjustment if required to ensure that the number of Placing Shares subscribed for shall represent, on completion of the Placing, 29.9% of the total issued shares of the Company.
Enquires:
Dr Trevor Davenport/Craig Brown, Kryso Resources plc
Tel: +44 (0)20 7371 0600
Katy Mitchell, WH Ireland Limited
Tel: +44 (0)16 1832 2174
Christian Dennis/Jeremy King, Optiva Securities Limited (formerly Orbis Equity Partners Limited)
Tel: +44 (0)20 3137 1902
Ben Knowles/Bob Huxford/Leah Kramer, Walbrook PR
Tel: +44 (0)20 7933 8780
For further information, please visit the Company's website www.kryso.com
About the Pakrut Gold Project
The Pakrut gold project, of which Kryso has 100% ownership, is situated in Tajikistan approximately 112km northeast of the capital city Dushanbe. Pakrut has total JORC Code-compliant Mineral Resources of 3,024,000 oz Au (assuming a cut-off grade of 0.0g/t Au) and is located within the Tien Shan gold belt, which extends from Uzbekistan into Tajikistan, Kyrgyzstan and western China, and which hosts a number of multi-million ounce gold deposits.
Drilling at Pakrut has previously returned numerous exciting intersections, including the following results released in April 2010:
- Ore Zone 1: 25.5m at 7.5 g/t, 42.4m at 5.4 g/t and 12.0m at 6.4 g/t Au
- Ore Zone 3: 9.0m at 7.5 g/t and 13.5m at 7.5 g/t Au (with 4.5m at 20.1 g/t)
About Tajikistan
Tajikistan is a secular republic located in Central Asia. The country is a member of the Commonwealth of Independent States (CIS) and the Shanghai Cooperation Organisation. Tajikistan hosts numerous operating precious metal mines as well as the largest aluminium smelter in Central Asia. Kryso's management team has extensive experience in the mining industry in Tajikistan.
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