Last checked at 14 Sep 2009 07:00
14 September 2009 Kryso Resources plc (`Kryso' or `the Company') Placement Raising 500,000 with ALTUS Resource Capital Ltd
Kryso Resources plc (AIM: KYS) the gold exploration and development company that is advancing its Pakrut gold project in Tajikistan through a bankable feasibility study (`BFS'), is pleased to announce that it has entered into a subscription agreement with ALTUS Resource Capital Ltd (`ALTUS').
- Placement with ALTUS raising 500,000 before expenses
- Proceeds to be applied to completion of the Pakrut BFS
- Pakrut hosts total JORC Code-compliant resources of 1.98 Moz Au
- Intersections at Pakrut include 123.7m at 6.14g/t Au, 42m at 11.17g/t Au and 50m at 5.67g/t Au
- ALTUS is an LSE Specialist Fund Market-listed investment company focussed on the mining sector
Placement Terms
Under the terms of the Subscription Agreement ALTUS will subscribe for 10 million new ordinary shares in Kryso at a price of 0.05 per share raising 500,000 before expenses. ALTUS will receive 20 million warrants exercisable at a price of 0.08 per share at any time for a period of 60 months from the date of the subscription.
Kryso will appoint as a non-executive director of the Company a person nominated by ALTUS (the `Investor Director'). The Investor Director will not be remunerated by Kryso and will be subject to retirement in accordance with the Company's articles of association. ALTUS may, at its cost, require the Company to remove the person nominated as Investor Director and replace him with another person, subject always to the Company's articles of association and so long as ALTUS holds 3 per cent or more of the Company's issued share capital.
Application will be made for 10 million new ordinary shares to be admitted to trading on AIM in connection with this announcement, with admission expected on 17 September 2009. No such application will be made in respect of the warrants.
Trevor Davenport, Non-Executive Chairman and acting Managing Director of Kryso, comments:
`We greatly welcome this investment in Kryso by ALTUS, which comes during an important phase in the Company's development. ALTUS is managed by an experienced team of industry professionals and the subscription secures for Kryso the necessary funding to complete the bankable feasibility study now underway on its 1.98 Moz Pakrut gold project.'
About ALTUS Resource Capital Ltd
ALTUS Resource Capital Ltd is a Guernsey incorporated closed-ended investment company that listed on the Specialist Fund Market of the London Stock Exchange on 30 June 2009, raising total monies of 26 million. ALTUS, which is managed by a team with significant expertise in the fields of mineral exploration, development and production, aims to realize capital growth from investing in a concentrated portfolio of junior resource equities.
About the Pakrut Gold Project
The Pakrut gold project is situated in western Tajikistan approximately 112 km northeast of the capital city Dushanbe. Pakrut has total JORC Code-compliant gold resources of 1.98 Moz Au and is located within the Tien Shan gold belt, which extends from Uzbekistan into Tajikistan, Kyrgyzstan and western China and which hosts numerous multi-million ounce gold deposits.
A bankable feasibility study for the Pakrut project is currently being undertaken by the Beijing General Research Institute for Mining & Metallurgy. The bankable feasibility study is scheduled for completion before the end of 2009 and is targeting a mining operation producing in excess of 100,000oz Au per annum with cash costs of approximately US$300/oz Au.
For further information please visit the Company's website (www.kryso.com) or contact:
Dr. Trevor Davenport/Craig Brown, Kryso Resources plc
Tel: +44 (0) 20 7371 0600
Brett Miller, Astaire Securities plc
Tel: +44 (0) 20 7448 4498
Christian Dennis, Orbis Equity Partners Ltd
Tel: +44 (0) 20 3137 1902
Jason Bahnsen, Fox-Davies Capital Ltd
Tel: +44 (0) 20 7936 5200
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