Orogen Gold Regulatory News (ORE)

3 Jul 2006 07:01

Aricom PLC03 July 2006 Completion of acquisition of remaining 50 per cent. interest in Kimkanskoye & Sutarskoye iron ore assets 3 July 2006 Aricom plc ("Aricom" or the "Company"), the AIM listed mining company, announcesthe completion of the acquisition from Malavasia Enterprises Inc. ("Malavasia")of the remaining 50 per cent. interest in LLC Rubicon ("Rubicon"). Rubicon isthe Russian company which holds the licences to exploit the Kimkanskoye andSutarskoye iron ore deposits in Evreyskaya Avtonomnaya Oblast in Russia's FarEast. The completion of this transaction, which follows the earlieracquisition of an option to acquire an initial 50 per cent. stake in Rubiconfrom Philotus Holdings Ltd., secures 100 per cent. control of the Rubiconassets. As previously announced, Aricom has agreed to pay Malavasia an initialconsideration of US$175 million, of which US$25 million has been paid in cashand US$150 million is being satisfied through the issue of 100 million newordinary shares in the Company at a deemed value of 80 pence per share.Application has been made for these shares to be admitted to trading on AIM. Inaddition, a deferred consideration of up to US$97.5 million may also be payableto Malavasia following the completion of a valuation by an independent expert.This amount would be satisfied through the issue of up to 65 million additionalnew ordinary shares in the Company at a deemed value of 80 pence per share. The Kimkanskoye and Sutarskoye iron ore deposits have estimated reserves of 550million tonnes at C1 or better under the Russian resource classification systemand are situated just 4km and 10km from the Trans-Siberian Railway and close tothe north-eastern border of China. Enquiries: Tom Swithenbank Aricom plc 020 7201 8939Tim Grey The Millbrook Partnership 020 7520 9455 - ENDS - This information is provided by RNS The company news service from the London Stock Exchange