Oxus Gold Plc Regulatory News (OXS)

30 Jun 2006 12:08

Oxus Gold PLC30 June 2006 Oxus Gold plc JEROOY PROJECT STATUS UPDATE LONDON: 30 June 2006. Oxus Gold plc ('Oxus' or the 'Company') (OXS.L) announcesthat it has served a notice of arbitration on the Kyrgyz Government in respectof an investment dispute over the Jerooy gold project. The notice has beenserved pursuant to the UK-Kyrgyz Republic Bilateral Investment Treaty. TheCompany, however, remains in ongoing discussions with the Kyrgyz Governmentregarding reinstatement of the license to mine the Jerooy project. Ifarbitration proves necessary, the next step will be for an arbitral tribunal tobe constituted. Having offered to amend the terms of the Jerooy joint venture to the benefit ofthe Kyrgyz parties, the Company looks forward to a satisfactory resolution ofthe dispute and to being invited to continue the construction and development ofthe Jerooy project. The Company notes that the Kyrgyz Parliament has instructedthe Kyrgyz Government to nullify its agreement with a potential alternativeinvestor and to consider the licensing issue in an open and transparent manner,and that the local Kyrgyz courts have granted injunctions that prevent theGovernment from transferring the mining rights to another investor. Oxus has already spent over $50 million on the Jerooy project and constructionof the processing plant and related infrastructure are now largely complete.Assuming the license issue can be resolved relatively quickly, first goldproduction could begin early next year, which would be in the best interests ofthe local employees and the Kyrgyz Republic as a whole. Ends: For further information: Richard Wilkins - Company Secretary+44 (0) 207 907 2000 This information is provided by RNS The company news service from the London Stock Exchange