Last checked at 28 May 2009 07:00
28 May 2009 Kryso Resources plc (`Kryso' or `the Company') Update
- Financing of £500,000 agreed with Orbis Equity Partners
- Potential to raise additional financing of £1 million through Orbis Equity Partners
- Great Basin Gold Limited loan to be converted into new ordinary shares in Kryso
Vertex Mining Subscription
Further to the announcement made on 15 May 2009, discussions between Kryso and Vertex Mining International (Cyprus) Limited (`Vertex') have been discontinued. The conditional subscription agreement entered into with Vertex has lapsed, and the proposed subscription by Vertex for new ordinary shares in Kryso will not take place.
Equity Placing Agreement
The terms of an Equity Placing Agreement (`EPA') to raise gross proceeds of up to £1.5 million with minimum gross proceeds of £500,000 have been agreed between the Company and its co-broker, Orbis Equity Partners Limited.
The principal terms of the EPA are:
- New ordinary shares issued under the EPA will be priced at 5p per share, and warrants will be granted to subscribers for new ordinary shares in the Company on the basis of 1 warrant for each new ordinary share subscribed for. The warrants will be exercisable at a price of 8p per share at any time for a period of 24 months from the date of the EPA.
- Some £250,000 worth of new ordinary shares are to be issued under the EPA immediately (`the Initial Issue') and a further £250,000 worth of new ordinary shares will be issued (subject to shareholder approval) in two subsequent tranches of £125,000 each. The first tranche of £125,000 worth of new ordinary shares is to be issued one month after the Initial Issue, and the second tranche will be issued two months after the Initial Issue.
- Thereafter, subject to agreement between the Company and Orbis Equity Partners and to shareholder approval, up to an additional £1 million worth of new ordinary shares may be issued on the same terms.
Application will be made for shares issued pursuant to the EPA to be admitted to trading on AIM. No such application will be made in respect of the warrants.
Great Basin Gold Loan
Great Basin Gold Limited (`Great Basin') has agreed to convert the loan of £ 500,000 made to the Company in April 2008, plus interest due up to 31st May 2009 of £36,169.47, into new ordinary shares in Kryso at 5p per share. Great Basin will also be issued with warrants exercisable at 8p per share on the basis of 1 warrant for each new ordinary share issued pursuant to the loan conversion. These warrants shall be subject to the same terms and conditions as the warrants to be issued under the EPA.
Directorate Change
Vassilios Carellas, Managing Director, has today resigned from the board of the Company for personal reasons. Dr. Trevor Davenport, Non-Executive Chairman, will act as Managing Director until a replacement is selected for Mr. Carellas. The board of the Company would like to thank Mr. Carellas for his contribution to the development of Kryso and its projects.
Trevor Davenport, Non-Executive Chairman and acting Managing Director of Kryso Resources plc, comments:
`In view of the board's decision not to continue negotiations with Vertex, the Company has wasted no time in securing alternative financing in order to continue developing its Pakrut gold project, which has JORC Code compliant resources of in excess of 1.7 million oz Au, towards production.
Kryso's financial position has been significantly strengthened by the EPA agreed with Orbis, and an update on activities at Pakrut, where drilling is currently ongoing, will be provided shortly.'
For further information please contact:
Dr. Trevor Davenport/Craig Brown, Kryso Resources plc. Tel:020 7371 0600
Roxane Marffy, Ruegg & Co Ltd.Tel:020 7584 3663Christian Dennis, Orbis Equity Partners Ltd.Tel:020 3178 3977Jason Bahnsen, Fox-Davies Capital Ltd.Tel:020 7936 5200
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