21 Mar 2011 12:38
Oxus Gold plcAudit Commission/Declaration of Force Majeure
Oxus Gold plc (the "Company") refers to its announcement of 3 March 2011 in which it confirmed that its joint venture Amantaytau Goldfields ("AGF") was the subject of an extensive audit of its financial and economic activities by an audit commission appointed by the Ministry of Finance of Uzbekistan (the "Commission"). The Commission began its review following discussions between the Company's wholly-owned subsidiary, Oxus Resources Corporation ("ORC") and the Uzbek shareholders of AGF as regards the disposal of ORC's 50% stake in AGF.
As announced, the Directors of the Company have concluded that the Commission was not evaluating the assets of AGF in good faith and appeared to be using the process to find reasons to justify putting AGF into liquidation. In addition, certain licences and permits essential for AGF's ongoing operations have not been renewed.
As a result, ORC has been forced to declare force majeure under (i) the management and services agreement relating to AGF and (ii) the charter of AGF. ORC is no longer able to comply with its obligations under either of these agreements, specifically as regards its obligations to manage AGF. Accordingly ORC's contractual obligations under these agreements have currently been suspended.
The Company has to date not had a response to its proposal to the Uzbek shareholders of AGF to reach an amicable agreement to dispose of ORC's shareholding in AGF for fair value. The Company continues to work with its international legal counsel with a view to protecting the interests of the shareholders of the Company. The Company intends to move directly to international arbitration if the Uzbek shareholders do not reciprocate the Company's offer to negotiate in good faith or if there is an attempt to force AGF into liquidation. Shareholders will continue to be advised of any further material developments in respect of AGF as and when they occur.
Enquiries:
Oxus Gold plc Tel: +44 (0)20 7907 2000Richard Shead
Fairfax I.S. PLCNominated Adviser and BrokerEwan Leggat Tel: + 44(0)20 7598 5368
Tavistock CommunicationsEd Portman Tel: + 44 (0)20 7920 3150