Last checked at 1 Oct 2007 14:41
1 October 2007 Kryso Resources plc (`Kryso' or `the Company') AIM: KYS Placing Announcement
- Kryso places 10,780,595 shares at 11.5p through Fox-Davies Capital
- A total of ‚£1,239,768 raised before expenses
- Funds will be applied to Pakrut gold and Hukas nickel-copper projects
Kryso Resources plc, the mineral exploration development company operating in Tajikistan, is pleased to announce that it has placed 10,780,595 ordinary shares (`the Placing Shares') at a price of 11.5 pence each (`Placing Price') (together, `the Placing') for gross proceeds of ‚£1,239,768 through Fox-Davies Capital Limited (`FDC').
Kryso will utilise the funds for the advancement of the Pakrut gold project, where a bankable feasibility study is currently underway, and to sustain exploration of the Hukas nickel-copper project. Some funds will also go towards general working capital requirements.
Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. It is expected that admission will become effective and that trading will commence on 5 October 2007.
The Placing Shares represent 13.9 per cent of the enlarged issued share capital of the Company. Following the admission of the Placing Shares to trading on AIM, the Company will have 77,280,595 ordinary shares in issue.
Fox Davies Capital Limited acted as broker in relation to the Placing, and will receive a commission and warrants to subscribe for 581,549 New Ordinary Shares pursuant to the Placing.
Kryso Resources' Managing Director, Vassilios Carellas, comments:
`We are delighted with the support we have had for this placing. The funds raised will allow us to continue with the feasibility study currently underway on the Pakrut gold project and to carry out an exploration drilling programme on targets identified at the Hukas nickel-copper project by the recently completed geophysical survey.
We continue to make good progress with the Pakrut feasibility study, which we expect to complete during the first quarter of 2008. We remain highly encouraged by the recent high-grade gold intersections from drilling at Pakrut, while we eagerly anticipate the results of the upcoming drilling at Hukas. With gold and nickel prices both very strong, this is an exciting time for Kryso.'
For further information, please contact:
Vassilios Carellas/Craig Brown, Kryso Resources plc.
Tel: 020 7371 0600Brett Miller, Ruegg & Co Ltd.Tel: 020 7584 3663
Richard Hail, Fox-Davies Capital Limited.
Tel: 020 7936 5200
Stephen Clayson/Ron Marshman/John Greenhalgh, City of London PR Limited.
Tel: 020 7628 5518
Background Information on Kryso Resources plc
Kryso Resources controls 100% of the exploration rights to the Pakrut gold project, which lies within the highly prospective Tien-Shan gold belt. Kryso also controls 100% of the exploration rights to the Hukas nickel-copper project.
The Company is managed by a team with a proven track record of operating in Tajikistan, which it considers to be among the most attractive operating environments in Central Asia.
The feasibility study for the Pakrut gold project is expected to be completed during the first quarter of 2008. The main deposit at Pakrut currently has an estimated JORC-compliant resource of 596,500 oz and the Company aims to increase this estimate to 1 million oz or greater. Drilling at Pakrut continues to return exciting intersections, including 42m @ 11.17g/t and 50m @ 5.67g/t Au.
The Company envisages annualised production for 2009-10 of 100,000 oz per annum from a combined open pit and underground mine with average cash costs of $300 per ounce.
A geophysical survey over a large section of the Hukas nickel-copper project has been completed, and drill targets are now being generated. Previous drilling and surface sampling at Hukas has returned average grades of Ni - 2.86%; Cu - 1.26%; Co - 0.083%; PGM - 2.3 g/t.
KRYSO RESOURCES PLC