24 Jun 2009 10:44
Oxus Gold plc
("Oxus" or "Group")
Remuneration policy
The Board of Directors of Oxus have completed a further review of the corporate costs of the Group in order to preserve cash during these difficult economic times. The cash component of the remuneration of Directors and senior management will be reduced with effect from 1 July 2009 by 60% and compensated for by an issue of ordinary shares in Oxus Gold Plc. To further compensate for the reduction in cash remuneration, it has also been decided to cancel the share options of the Directors and certain senior staff and to replace these with new share options with an option price more in keeping with the current Oxus share price. A further RNS in this regard will be issued before the end of July 2009.
The shares to be issued to Directors and employees in lieu of cash will be issued quarterly in arrears on the last business day of each calendar quarter, commencing 30 September 2009. The number of shares to be issued to each Director or employee will be calculated by reference to the salary sacrifice of that person's remuneration divided by the average mid-market closing price of Oxus ordinary shares for the three months ending two business days before the date of issue.
The Board of Directors have also decided to restructure certain executive positions with effect from 1 July 2009. Mr R V L Wilkins will vacate the role of CEO, which he has held since January 2008, and he will become the Finance Director, which role was unoccupied following the retirement of Mr J Kipps on 31 January 2009. The position of CEO will remain unfilled in the immediate future.
Speaking today, Mr R Shead, Executive Chairman of Oxus, said:
"Whilst the funding is being sought to construct and develop the Group's 50% owned Underground Sulphide mine in Uzbekistan, it is prudent to reduce expenditure throughout the Group in order to preserve its cash resources. The agreement of Directors and employees to accept shares in lieu of cash represents a vote of confidence in the future prospects of the Group. The appointment of Mr Wilkins as Finance Director will more accurately reflect his future role at Oxus and he will continue to make a very valuable contribution to our efforts to develop the Group's mining operations in Uzbekistan."
Contact:
Oxus Gold plc
Richard Shead
Tel: +44 (0)20 7907 2000
Fairfax I.S. PLC
Ewan Leggat
Tel: + 44(0)20 7598 536
Conduit PR Ltd
Ed Portman
Tel: +44 (0) 207 429 6607