9 Jun 2010 07:00
OXUS GOLD PLC
Financing Update
LONDON: 9 June 2010 - Oxus Gold plc ("Oxus" or the "Company") refers to its announcement of 7 January 2010 in which it confirmed that it had signed a conditional agreement with a consortium of Chinese investors comprising of Baiyin Non-Ferrous Group Co Ltd ("Baiyin"), CITIC Construction Co Ltd ("CITIC"), and Chang Xin Yuan Su (Tianjin) Equity Investment Fund Management LP to invest and arrange financing in a total aggregate amount of up to approximately $185 million (the "Agreement").
The financing was conditional on the signing of a Foreign Investment Agreement ("FIA") with the Uzbekistan Government by 30 June 2010 and receipt of the customary approvals from the Government of the People's Republic of China (the "Chinese Government") and admission of the new Ordinary Shares to trading on AIM by 31 December 2010. If the FIA had not been executed by 30 June 2010 then both the Company and the consortium would have been entitled to withdraw from the Agreement.
Oxus is pleased to announce that on 8 June 2010 an amendment to the Agreement was signed which has removed the signing of the FIA as a condition to the financing. Accordingly, upon receipt of the relevant approvals from the Chinese Government, the consortium will make the initial investment of approximately $85 million by way of the issue of new Ordinary Shares and convertible loan notes in the Company.
In addition to the issue of new Ordinary Shares and convertible loan notes in the Company, the consortium will be granted warrants to subscribe for further new Ordinary Shares in the Company for approximately $20 million in return for an undertaking to arrange a further minimum of $80 million in project finance.
Upon finalising the FIA, the Company remains committed to finance and develop its 50% owned Amantaytau Goldfields ("AGF") joint venture in Uzbekistan. In this regard, a draft FIA has been submitted to the relevant Uzbekistan Government ministries and agencies and comments are being received and discussed as to its final form and content.
A decision has also been taken by the Company that it will utilise certain of the cash resources arising from the abovementioned investment, through acquisitions and joint ventures, to expand its precious metals operations throughout the Central Asian and surrounding region.
Richard Shead, Executive Chairman, commented: "This commitment to finance Oxus is a significant show of confidence in the future of our Company. We will continue to move as quickly as possible to conclude the FIA with the Uzbekistan Government so that we can develop the significant potential at AGF. We also look forward to working closely with the Baiyin CITIC consortium to identify, secure and develop other precious metal projects in the region, for the benefit of all our stakeholders"
For further information, please contact:
Oxus Gold Plc Tel: +44 (0) 207 907 2000
Richard Shead / Richard Wilkins
Fairfax I.S. PLC
Nomad & Broker Tel: +44 (0) 207 598 5368
Ewan Leggat
Conduit PR Ltd
Ed Portman / Leesa Peters Tel: +44 (0) 207 429 6607