3 Mar 2011 14:48
Oxus Gold plc
International Arbitration / Directorate Change
Oxus Gold ("Oxus" or the "Company") refers to the recent announcement of discussions between its wholly owned subsidiary, Oxus Resources Corporation ("ORC") and the Uzbek shareholders of Amantaytau Goldfields ("AGF") to acquire ORC's 50% owned stake in the AGF joint venture. As previously announced, the Uzbek shareholders, being Uzbek State owned entities, had agreed, in principle, to acquire ORC's 50% shareholding in AGF for cash, at a price to be agreed.
Since the above announcement, AGF has been subjected to an extensive audit of the financial and economic activities of AGF by an audit commission appointed by the Ministry of Finance in Uzbekistan. The practices employed by the audit commission have led the Directors to conclude that there is no evaluation of the assets taking place in good faith and there is a risk of the audit committee using the process to find reasons to justify putting AGF into liquidation. Accordingly, Oxus has now appointed Amsterdam & Peroff LLP ("A&P"), as legal counsel who specialise in dealing with disputes involving Sovereign States, to act on its behalf and A&P today advised the Government of Uzbekistan that Oxus intends to move directly to international arbitration to protect the interests of shareholders of Oxus, in the event that an agreement cannot be reached to dispose of ORC's shareholding in AGF for fair value or where there is any 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.
Oxus further announces that Richard Wilkins, the Finance Director, has for personal reasons resigned as a Director of Oxus with immediate effect.
Richard Shead, Chairman of Oxus, said:
"We still hope that an agreement can be reached with the Uzbek State in respect of the disposal of ORC's shareholding in AGF for fair value and, failing that, the Company will be left with no choice but to proceed to international arbitration.
Further, the Board would like to thank Richard for his commitment to Oxus over the years and it is with regret that the Board accepted his resignation."
Enquiries:
Oxus Gold plc Tel: +44 (0)20 7907 2000
Richard Shead
Fairfax I.S. PLC
Nominated Adviser and Broker
Ewan Leggat Tel: + 44(0)20 7598 5368
Tavistock Communications
Ed Portman Tel: + 44 (0)20 7920 3150