Oxus Gold Plc Regulatory News (OXS)

2 May 2006 07:00

Eurogold Limited30 April 2006 EUROGOLD L I M I T E D (ACN 009 070 384) Results for the Quarter Ended 31 March 2006 30 April 2006 ASX/AIM Symbol "EUG" CORPORATE Eurogold has agreed subject to shareholder approval, to sell its Ukrainian goldmining assets and its Romanian exploration assets to Oxus Gold Plc (OXS) forapproximately £11 million (AUD$26m). Part of the consideration will be satisfiedby the cancellation of Oxus's 17% shareholding in Eurogold (15.44% on a fullydiluted basis) and the balance (approximately A$23m) in cash. The vendors of the Saulyak and Beregove projects (Alpha Minerals Limited andUkraine Resources Limited) have exercised the following: 1. The Put Option over their shares in Eurogold Holdings (Bermuda) Limited ("EHBL") On completion EHBL will become a wholly owned subsidiary of Eurogold and the vendors will be issued 30,000,000 shares in Eurogold which will increase Eurogold's issued capital to 279,679,494 shares. 2. The Re-transfer right over all of the shares in Zakar Resources Limited which owns 6.33% of the Beregove project (via Zakarpatpolymetaly Ltd ("ZLLC")). On completion of the Re-transfer Eurogold will (via the then 100% subsidiary Saulyak Resources Limited ("SRL")) still have a facility with ZLLC of US$1,000,000 of which as at the date hereof is drawn down to US$ 427,854. SRL has the right to convert the facility into shares in ZLLC which will be issued to such party as SRL shall nominate. The Put Options and Re-transfer right were entered into when Eurogold acquiredthe Saulyak and Beregove projects and notwithstanding that Mr Chris Baker has aninterest in the vendors there is no need to obtain the approval of Eurogoldshareholders to complete each of them. Eurogold is currently considering the exercised Put Option and Re-transfer rightand what is required to complete each of them. When these complete it and theirfinancial impact will be announced to the market. When the agreement with Oxus has been executed further details of thetransaction and the financial impact will be announced to the market and thenincluded in the Notice of General Meeting sent to shareholders when seekingtheir approval It is expected that the Oxus transaction and completion of the Put Option andRe-transfer right will complete prior to June 30. On completion Eurogold will have 236,491,394 shares on issue and cash (aftertax) of approximately A$0.10 per share. The Directors intend to support the Oxus transaction. Oxus will be prohibitedfrom voting on the transaction. The Saulyak Project continues to improve as evidenced by the results herein, butit is also at a stage where it requires a large amount of development capitaland it is the Directors view that to raise capital with the Eurogold share priceat such low levels, would not necessarily be serving the best interests ofshareholders. On completion of the Oxus transaction Eurogold will seek to pursue otherunderdeveloped opportunities using its A$23m treasury. UKRAINE - SAULYAK GOLD PROJECT (Eurogold 99.72%) During the quarter 33 drillholes totalling 875m were completed with a total of43 drillholes totalling 1145m now completed. The programme plan is to drill 94holes at 4800m. The shorter drillholes are being drilled using two air drivenBazooka drill rigs. Assay results were received for 30 drillholes during the quarter, 27 drillholeintersections are tabulated below. Results of the drillholes are consistent withexpectations and confirmed the presence of robust economic mineralisation in No1 Orebody. +-----------+---------+----------+----------+----------+----------+ | Drillhole | From | To | Interval |Gold Grade| Core | | No. | | | | | | +-----------+---------+----------+----------+----------+----------+ | | (m) | (m) | (m) | (g/t) |Recovery %| +-----------+---------+----------+----------+----------+----------+ | 583 | 10.47 | 15.45 | 4.98 | 3.59 | 92 | +-----------+---------+----------+----------+----------+----------+ | 583A | 7.22 | 14.30 | 7.08 | 5.58 | 90 | +-----------+---------+----------+----------+----------+----------+ | 584 | 5.58 | 14.40 | 8.82 | 7.88 | 85 | +-----------+---------+----------+----------+----------+----------+ | 585 | 13.60 | 15.85 | 2.25 | 3.54 | 96 | +-----------+---------+----------+----------+----------+----------+ | 608 | 15.37 | 17.39 | 2.02 | 10.05 | 88 | +-----------+---------+----------+----------+----------+----------+ | 586 | 14.93 | 19.68 | 4.75 | 2.28 | 65 | +-----------+---------+----------+----------+----------+----------+ | 738 | 5.25 | 6.87 | 1.62 | 6.59 | 81 | +-----------+---------+----------+----------+----------+----------+ | 736 | 2.58 | 4.65 | 2.07 | 5.71 | 88 | +-----------+---------+----------+----------+----------+----------+ | 734 | 5.62 | 7.40 | 1.78 | 1.92 | 74 | +-----------+---------+----------+----------+----------+----------+ | 922 | 21.49 | 26.09 | 4.60 | 13.77 | 76 | +-----------+---------+----------+----------+----------+----------+ | 922 | 21.49 | 29.40 | 7.91 | 8.69 | 67 | +-----------+---------+----------+----------+----------+----------+ | 823 | 25.83 | 31.23 | 5.40 | 2.59 | 96 | +-----------+---------+----------+----------+----------+----------+ | 853 | 14.50 | 16.11 | 1.61 | 2.11 | 84 | +-----------+---------+----------+----------+----------+----------+ | 924 | 16.09 | 19.16 | 3.07 | 10.29 | 59 | +-----------+---------+----------+----------+----------+----------+ | 852 | 3.81 | 6.36 | 2.55 | 1.43 | 87 | +-----------+---------+----------+----------+----------+----------+ | 848 | 10.26 | 13.32 | 3.06 | 1.75 | 76 | +-----------+---------+----------+----------+----------+----------+ | 848 | 23.93 | 26.00 | 2.07 | 2.85 | 89 | +-----------+---------+----------+----------+----------+----------+ | 847 | 8.43 | 11.52 | 3.09 | 2.23 | 82 | +-----------+---------+----------+----------+----------+----------+ | 926 | 0.00 | 4.88 | 4.88 | 2.78 | 69 | +-----------+---------+----------+----------+----------+----------+ | 767 | 4.21 | 13.26 | 9.05 | 4.80 | 95 | +-----------+---------+----------+----------+----------+----------+ | 850 | 9.61 | 11.65 | 2.04 | 3.34 | 66 | +-----------+---------+----------+----------+----------+----------+ | 592 | 0.50 | 4.76 | 4.26 | 10.17 | 98 | +-----------+---------+----------+----------+----------+----------+ | 592 | 0.50 | 11.62 | 11.12 | 5.40 | 97 | +-----------+---------+----------+----------+----------+----------+ | 851 | 5.66 | 12.33 | 6.67 | 5.05 | 99 | +-----------+---------+----------+----------+----------+----------+ | 925 | 1.62 | 4.10 | 2.48 | 4.93 | 100 | +-----------+---------+----------+----------+----------+----------+ | 927 | 1.85 | 3.27 | 1.42 | 8.90 | 69 | +-----------+---------+----------+----------+----------+----------+ | 931 | 0.92 | 5.12 | 4.20 | 3.12 | 81 | +-----------+---------+----------+----------+----------+----------+ Rehabilitation and cleanup of the mine continued and kept pace with demand fordrilling sites. An audit of operations by the Ukrainian State Geological Commission concludedthat the project is on track for approval of C1 and C2 category ore reserveswithin the required licence time frame. ROMANIA - TRANSGOLD SA (Eurogold 50%) As foreshadowed in the December quarterly report, the Transgold operation inRomania has been placed into liquidation. Eurogold has no further liability orfinancial obligation to Transgold over and above the investment that has alreadybeen made and reflected in the accounts.Oxus is not acquiring Eurogold'sinterest in Transgold. All of the mining activity for the Eurogold Group is located outside Australiaand as such all of the mineral resources or ore reserves in this report arebased on information compiled by Mr Simon Pepper who is a recognised miningprofessional on the basis that he holds a MSc Mining Geology from CamborneSchool of Mines, has at least five years experience in the estimation,assessment and evaluation of the type of mineral resources or ore reserves inthis report and is a member of the Institute of Materials, Minerals and Miningin the United Kingdom.. This report complies with Appendix 5B of the Listing Rules. PETER GUNZBURGExecutive Chairman Rule 5.3 Appendix 5B Mining Exploration Entity Quarterly Report Origin: Appendix 8 Name of EntityEUROGOLD LIMITED ("EUG") ABN Quarter Ended ("Current Quarter")009 070 384 -002 31 March 2006 Consolidated Statement of Cash Flows Cash Flows Related to Operating Activities Current Quarter Year to Date $A'000 (9 months) $A'000 1.1 Receipts from product sales and related 0 121 debtors 1.2 Payments for (a) exploration and evaluation (533) (1,509) (b) development (88) (247) (c) production 0 0 (d) administration (753) (2,476) 1.3 Dividends received 0 0 1.4 Interest and other items of a similar 22 42 nature received 1.5 Interest and other costs of finance paid 0 (1) 1.6 Income taxes paid (70) (174) 1.7 Other - (Tax/VAT) 0 0 Net Operating Cash Flows (1,422) (4,244) Cash Flows Related to Investing Activities 1.8 Payment for purchases of: (a) prospects 0 0 (b) equity investments 0 0 (c) other fixed assets (3) (165) 1.9 Proceeds from sale of: (a) prospects 0 0 (b) equity investments 0 0 (c) other fixed assets 0 01.10 Loans to other entities (285) (762)1.11 Loans repaid by other entities 0 01.12 Other- 0 0 Net Investing Cash Flows (288) (927)1.13 Total operating and investing cash flows (1,710) (5,171) (carried forward) 1.13 Total operating and investing cash flows (1,710) (5,171) (brought forward) Cash Flows Related to Financing Activities1.14 Proceeds from issues of shares, options, 0 3,098 etc.1.15 Proceeds from sale of forfeited shares 0 01.16 Proceeds from borrowings 0 01.17 Repayment of borrowings 0 01.18 Dividends paid 0 01.19 Other (Capital Raising Costs) 0 (45) Net Financing Cash Flows 0 3,053 Net Increase (Decrease) in Cash Held (1,710) (2,118)1.20 Cash at beginning of quarter/year to date 2,418 2,9281.21 Exchange rate adjustments to 1.20 76 (26)1.22 Cash at End of Quarter 784 784 Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the relatedentities Current quarter $A'0001.23 Aggregate amount of payments to the parties included in item 140 1.21.24 Aggregate amount of loans to the parties included in item 285 1.10 1.25 Explanation necessary for an understanding of the transactions ------------------------------------------------ Salaries, superannuation contributions, consulting and directors fees paid to Directors. ------------------------------------------------ Non-Cash Financing and Investing Activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows ------------------------------------------------- none ------------------------------------------------- 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest ------------------------------------------------- none ------------------------------------------------- Financing Facilities Available Add notes as necessary for an understanding of the position. Amount Available Amount Used $A'000 $A'0003.1 Loan facilities 0 03.2 Credit standby arrangements 0 0 Estimated Cash Outflows for Next Quarter $A'0004.1 Exploration and evaluation 5004.2 Development 75 Total 575 Reconciliation of Cash Reconciliation of cash at the end of the Current Quarter Previous Quarterquarter (as shown in the consolidatedstatement of cash flows) to the related itemsin the accounts is as follows. $A'000 $A'0005.1 Cash on hand and at bank 784 2,4185.2 Deposits at call 0 05.3 Bank overdraft 0 05.4 Other 0 0 Total: Cash at End of Quarter (item 784 2,418 1.22) Changes in Interests in Mining Tenements Tenement Nature of Interest at Interest at Reference Interest Beginning of End of Quarter Quarter (note (2))6.1 Interests in mining No changes in - - tenements relinquished, reduced or lapsed Interests6.2 Interests in mining No changes in - - tenements acquired or increased Interests Issued and Quoted Securities at End of Current Quarter Description includes rate of interest and any redemption or conversion rightstogether with prices and dates. Number Issued Number Quoted Issue Price Per Amount Paid Up Security Per Security (cents) (cents) 7.1 Preference Nil Nil N/Applicable N/Applicable +securities (description) 7.2 Issued during Nil Nil N/Applicable N/Applicable quarter 7.3 +Ordinary 249,679,494 249,679,494 N/Applicable N/Applicable Securities 7.4 Issued during Nil Nil N/Applicable quarter 7.5 +Convertible Nil Nil N/Applicable N/Applicable Debt Securities (description) 7.6 Issued during Nil Nil N/Applicable N/Applicable quarter 7.7 Options 2,000,000 Nil Nil Nil (description) (unquoted Facilitator options) 7.8 Issued during Nil Nil Nil Nil quarter 7.9 Exercised Nil Nil Nil Nil during quarter7.10 Expired Nil Nil N/Applicable N/Applicable during quarter7.11 Debentures Nil Nil (totals only)7.12 Unsecured Nil Nil Notes (totals only) Compliance Statement 1 This statement has been prepared under accounting policies which comply withaccounting standards as defined in the Corporations Law or other standardsacceptable to ASX (see note 4). 2 This statement does /does not* (delete one) give a true and fair view of thematters disclosed. P L GUNZBURG Date: 30 April 2006 Executive Chairman Notes 1 The quarterly report provides a basis for informing the market how theentity's activities have been financed for the past quarter and the effect onits cash position. An entity wanting to disclose additional information isencouraged to do so, in a note or notes attached to this report. 2 The "Nature of Interest" (items 6.1 and 6.2) includes options in respect ofinterests in mining tenements acquired, exercised or lapsed during the reportingperiod. If the entity is involved in a joint venture agreement and there areconditions precedent which will change its percentage interest in a miningtenement, it should disclose the change of percentage interest and conditionsprecedent in the list required for items 6.1 and 6.2. 3 Issued and Quoted Securities. The issue price and amount paid up is notrequired in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting for ExtractiveIndustries and AASB 1026: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of InternationalAccounting Standards for foreign entities. If the standards used do not addressa topic, the Australian standard on that topic (if any) must be complied with. = = = = = This information is provided by RNS The company news service from the London Stock Exchange