3 Feb 2011 07:00
Oxus Gold plc
Strategic Update
Oxus Gold ("Oxus" or the "Company") refers to recent discussions between its wholly owned subsidiary, Oxus Resources Corporation ("ORC"), and the Uzbek shareholders of ORC's 50% owned Amantaytau Goldfields joint venture ("AGF").
As a result of these discussions, the Uzbek shareholders have agreed, in principle, to acquire ORC's 50% shareholding in AGF for cash, at a price to be agreed. The Directors of Oxus will only recommend a disposal of ORC's interest in AGF if the price agreed in their opinion represents fair value to the shareholders of Oxus.
The Company also announces that Miradil Djalalov and James McBurney will resign as non-executive directors of Oxus with immediate effect and that it is implementing a significant cost reduction programme throughout the Group.
Whilst the negotiations to dispose of ORC's shareholding in AGF progress, AGF will continue to process ore from its stockpile at Nukrakon.
In the event that ORC reaches agreement with the Uzbek shareholders to dispose of the shares in AGF, then such disposal would require the approval of the shareholders of Oxus. In addition the Company would become an Investing Company (as defined in the AIM Rules for Companies) and, as such, it would need to advise shareholders of the Company's investing policy and obtain approval for that policy. It is currently proposed that the Company's investing policy would be to generate an attractive rate of return for shareholders, predominantly through capital appreciation, by taking advantage of opportunities to invest in the mining sector outside Uzbekistan.
Shareholders will continue to be advised as to the progress of these negotiations
Enquiries:
Oxus Gold plc Tel: +44 (0)20 7907 2000
Richard SheadRichard Wilkins
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