14 May 2008 11:49
OXUS GOLD PLC
Issue of Convertible Loan Notes
LONDON: 14 May 2008 - Oxus Gold plc ("Oxus" or the "Company") (OXS.L) announces that it has completed a placement of 8.0% unsecured convertible loan notes in units of $250,000 each at par, due 2010 (the "Notes"), for gross proceeds of $18.5 million. The Notes have been issued to existing institutional and strategic shareholders and to new institutional investors.
The Notes are convertible into new ordinary shares of the Company at a price of 37 pence per share. At the holder's option, the Notes may be converted on the earlier of a written request from the holder to convert, or first drawdown on the project finance facility to construct the underground sulphides project at Amantaytau Goldfields ("AGF"). The Notes may also be redeemed on the earlier of first drawdown on the project finance facility, or two years. If all the Notes are converted, the maximum number of new shares that would be issued is 26,315,789.
Oxus has mandated the Royal Bank of Scotland to arrange a project finance facility of approximately US$150 million on behalf of AGF. First drawdown on the facility is currently expected to occur by November 2008.
Richard Wilkins, CEO of Oxus, commented: "I am very pleased that we were able to conclude this issue in the context of the current market. This placement of loan notes, although less than we had originally proposed to raise, is still sufficient to enable AGF to proceed with the development of the underground sulphides project, ahead of drawdown on the RBS facility, and in order for AGF to meet its first underground production target of Q3 2009. It will also enable AGF to construct the heap leach operation at Asaukak, and to progress its exploration programme. I believe that the Company has now entered a new phase of its development, one that will see our attributable gold production increase significantly, and with it our profitability. We will also have financed a major capital expenditure programme with minimum dilution to our shareholders."
OXUS GOLD PLC Tel: +44 (0) 207 907 2000
Jonathan Kipps - Finance Director
Richard Wilkins - Chief Executive Officer
CANACCORD ADAMS LIMITED Tel: +44 (0) 207 050 6500
Mike Jones
Robin Birchall
BANKSIDE CONSULTANTS Tel: +44 (0) 207 367 8888
Keith Irons
Oliver Winters