Last checked at 3 Oct 2007 10:41
3 October 2007 Kryso Resources plc (`Kryso' or `the Company') AIM: KYS Kryso Announces Increase in Placing
- Placing expanded as Great Basin Gold takes up pre-emption rights
- Total shares placed increased to 12,689,024
- Total funds raised before expenses increased to ‚£1,459,237.76
Kryso Resources plc, the mineral exploration and development company operating in Tajikistan, is pleased to announce an increase in the placing announced 1 October to 12,689,024 ordinary shares (`the Placing Shares') at a price of 11.5 pence each (`the Placing Price') (together, `the Placing'), taking the total gross proceeds of the Placing to ‚£1,459,237.76. Following the announcement made by the Company on 1 October, this now completes the Placing.
The Placing Shares represent 16.02 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 79,189,024 ordinary shares in issue.
Pursuant to a share and warrant purchase agreement between Kryso Resources plc and Great Basin Gold Limited dated 18 December 2006, Great Basin Gold Limited has taken up its pre-emptive rights of anti-dilution and participated in the placing announced 1 October. Great Basin has now subscribed for 1,908,429 ordinary shares, therefore maintaining its stake of 15% in the Company, raising an additional ‚£219,469.34 before expenses.
Fox Davies Capital Limited acted as broker in relation to the Placing, and will receive a commission and warrants to subscribe for a total of 619,717 new ordinary shares in Kryso Resources.
Kryso Resources' Managing Director, Vassilios Carellas, comments:
`We are delighted that Great Basin have elected to exercise their pre-emption rights and support us in our latest placing. These funds will allow us to progress the Pakrut feasibility study to completion, which is expected during the first quarter of next year, and to drill exploration targets identified at the Hukas nickel-copper prospect by the recently completed geophysical survey.'
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 annualized 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