Last checked at 8 Aug 2013 10:13
8 August 2013
Kryso Resources Corporation Limited
(‘Kryso’ or the ‘Company’)
AIM: KYS
AWARD OF EXTERNAL POWER SUPPLY CONSTRUCTION CONTRACT
External power supply construction contract
Kryso Resources Corporation Limited (AIM: KYS), the mineral exploration and development company currently developing the Pakrut gold project in the Republic of Tajikistan, is pleased to announce that its wholly-owned subsidiary Kryso Resources Limited (formerly Kryso Resources Plc) (‘KRL’) has awarded Shanxi No.3 Electric Power Construction Company (‘Shanxi’) the contract for the construction of the external power supply network for the Pakrut gold project (‘the Construction Contract’).
The total value of the Construction Contract is RMB 150,444,000 (approximately US$23.88million, based on the fixed exchange rate of 6.3 RMB to the Dollar, for the repayment of the RMB loan pursuant to the loan agreement (the ‘Loan Agreement’) entered into on 24 May 2012 with China Nonferrous Metals Int’l Mining Co., Ltd. (‘CNMIM’)). The cost of the Construction Contract will be satisfied by a drawdown under the Loan Agreement.
Preparatory works are due to commence in September 2013 and the construction period is 8 months. The works to be undertaken by Shanxi under the Construction Contract will include: (1) the retrofit of the 110kV substation at Khamza; (2) the erection of a 110kV power supply line from the Khamza substation to the Pakrut main step-down substation, with a total length of about 73km; and (3) the construction of a 110kV step-down substation at Pakrut.
Shanxi were awarded the Construction Contract following a competitive tender process undertaken by Kryso after receiving several tender submissions. They were established in 1978, registered as a State Owned Enterprise in 1986 and have over 3,600 employees. Shanxi have built a significant number of power substations, power plants and power transmission lines in China and worldwide.
In line with the terms of an agency agreement entered into on 24 May 2012 between KRL, Limited Liability Pakrut (the Company’s indirect wholly-owned subsidiary) (‘LLC Pakrut’) and CNMIM, the Company’s largest shareholder with approximately 38.5 per cent of the issued share capital, CNMIM was appointed as the agent of KRL and LLC Pakrut for the purposes of entering into certain agreements in connection with the development of the Pakrut gold project. Accordingly, following approval by KRL, CNMIM has entered into the Construction Contract as agent for KRL and LLC Pakrut.
Project Summary
The Pakrut gold project, of which Kryso has 100 per cent ownership, is situated in Tajikistan approximately 120km northeast of the capital city Dushanbe. Pakrut has estimated total JORC compliant resources of 4,720,000 oz Au (assuming a cut-off grade of 0.5 grams per tonne of gold) 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.
Kryso is currently in a construction phase with mining contractors on site developing the underground mine and surface infrastructure. Kryso has completed a number of new bridges and roads up to site. Tenders have been completed for the large items of plant equipment and contracts are now being finalised with successful tenderers. Infrastructure construction began in October 2011 and construction of the mine commenced in September 2012. At the same time exploration is continuing with five drill rigs currently operating in the Pakrut Licensed Area drilling at Eastern Pakrut, Rufigar and Sulfidnoye.
For further information please visit the Company’s website (www.kryso.com) or contact:
Kryso Resources Corporation Limited
Craig Brown, Managing Director
Tel: +44 (0) 20 7349 9160
Investec Bank Plc
Jeremy Ellis, Chris Sim, George Price
Tel: +44 (0)20 7597 5970
XCAP Securities Plc
Jon Belliss, Guy Peters
Tel: +44 (0) 207 101 7070
Blythe Weigh Communications
Paul Weigh, Tim Blythe, Halimah Hussain
Tel: +44 (0)20 7138 3204
About Tajikistan
Tajikistan is a secular republic located in Central Asia. The country is a member of the Commonwealth of Independent States 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.
Copyright Business Wire 2013