Last checked at 28 Sep 2010 18:02
Kryso Resources plc - Announcement 200k Advance (2).docx
28 September 2010
Kryso Resources plc
("Kryso" or the "Company")
Extension of CNMIM Transaction Long Stop Date
Cash Advance of £200,000 Paid to Kryso
Kryso Resources plc (AIM: KYS), the mineral exploration and development company with gold and nickel-copper projects in Tajikistan, announces 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") for the 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 GBP10.99 million before expenses, CNMIM has elected to extend the Long Stop Date, which is the date on which the Subscription Agreement shall terminate unless all conditions for completion of the Placing have been satisfied or waived.
The Long Stop Date was originally 27 September 2010 or, if earlier, the date falling ten business days after satisfaction or waiver of the conditions for completion of the Placing (being approval of the Placing by Kryso shareholders and by the relevant PRC authorities).
The Long Stop Date has now been extended to 27 October 2010 or, if earlier, the date falling ten business days after satisfaction or waiver of the conditions for completion of the Placing (the "Extended Date"), or, if the Placing has been approved by the relevant PRC authorities by the Extended Date but has yet to be approved by Kryso shareholders, the date falling twenty days after the Extended Date.
In order to extend the Long Stop Date, CNMIM has procured a payment of £200,000 (the "Cash Advance") to Kryso. The Cash Advance is treated as an advance payment of the purchase price and shall be deducted from the purchase price payable at completion. In the event that the Subscription Agreement is terminated without completion of the Placing or if completion does not otherwise occur, the Company is obliged to issue to CNMIM 1,333,333 ordinary shares of the Company in respect of the Cash Advance, or, in the event that such shares are not duly issued, to repay such cash advance to CNMIM in cash.
Summary Terms of the Subscription Agreement
* 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; and shall have the right to appoint and maintain up to two directors to the board of Kryso, one of whom will take the role of Non-Executive Chairman
* CNMIM is to use its best endeavours, subject to completion of the Placing, 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 are to be deployed to fund the development of the Pakrut gold project along with further exploration within the Pakrut licensed area and at the Hukas nickel-copper project
Further Information
* The Subscription Agreement and 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 the relevant PRC authorities. It is the intention of the Company that notice of the general meeting will be despatched to shareholders after approvals are received from the relevant PRC authorities
* 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 plcTel: +44 (0)20 7371 0600
Katy Mitchell, WH Ireland LimitedTel: +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 PRTel: +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.
Copyright Business Wire 2010