Last checked at 8 Mar 2011 07:00
Kryso Resources plc
("Kryso" or the "Company")
Offer of Finance
Kryso Resources plc (AIM: KYS), the mineral exploration and development company with gold and nickel-copper projects in Tajikistan, is pleased to announce that The Export-Import Bank of China ("China Eximbank") has issued a letter of interest ("LOI") for the proposed financing of the Company's 100% owned Pakrut gold project (the "Pakrut Project").
As announced on 10 January 2011, China Nonferrous Metals International Mining Co. Ltd. ("CNMIM") was obliged to use best endeavours, pursuant to the Subscription Agreement entered into by the Company and CNMIM on 27 July 2010, to procure a written offer of debt funding to the Company for the Company's Pakrut project, within 3 months of 8 December 2010.
In the LOI, China Eximbank confirms that it is interested in providing up to 70% of the financing required by the Company for the Pakrut Project as calculated in the Bankable Feasibility Study prepared by the Beijing General Research Institute of Mining & Metallurgy (approximately US $77,000,000).
In addition to the LOI, CNMIM has arranged for its parent company, China Nonferrous Metals Group Co. Ltd. to provide a letter of support to act as guarantor in respect of the proposed financing from China Eximbank.
The LOI is dependent on a number of conditions including due diligence and further approvals and is valid for six months. There can be no guarantee at this stage that any monies will be advanced to the Company or its project under this LOI.
The Company will also consider this offer of finance alongside other financing opportunities available to it and will make a further announcement on the procurement of financing for the Pakrut Project
-Ends-
Enquires:
Dr Trevor Davenport/Craig Brown, Kryso Resources plc
Tel: +44 (0)20 7371 0600
Katy Mitchell, WH Ireland Limited
Tel: +44 (0)16 1832 2174
Christian Dennis/Jeremy King, Optiva Securities Limited
Tel: +44 (0)20 3137 1902
Bob Huxford, Walbrook PR
Tel: +44 (0)20 7933 8780
Mobile: 07900 346 978
Bob.huxford@walbrookpr.com
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.
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.
Kryso Resources
Source: Kryso Resources
Copyright Business Wire 2011