Last checked at 20 Jan 2011 12:37
| 20 January 2011 |
AURUM MINING PLC
("Aurum" or the ''Company")
Update on litigation in the Kyrgyz Republic
Following its announcement of 27 October 2010, the Company is giving an update on the on-going litigation in the Kyrgyz Republic.
In October 2010, Aurum announced that its wholly owned subsidiary, Tryden International Limited ("Tryden"), was named, amongst others, as a defendant to a civil case which was heard in the Talas Inter-District Court (the "Court") in the Kyrgyz Republic. The case was brought against Tryden by the General Prosecutors Office of the Kyrgyz Republic (the "GPO") and the claim was upheld by the Court. The GPO's case, which challenges transfers of equity between Aurum and its local partner, Invest-center Talas ("ICT"), in 2009 and early 2010, could result in Aurum being stripped of its 10% residual stake in the Andash asset and the stake being offered to the Government of the Kyrgyz Republic. In October 2010, Aurum announced that it was going to appeal the decision of the Court.
As expected, and although no formal judgement has yet been issued, the provincial Court has rejected Tryden's appeal. This means that Tryden can now appeal to the Supreme Court of Kyrgyzstan in Bishkek. Both Aurum and ICT have always believed that the Supreme Court offers the best chance of getting a fair and reasonable hearing of the case. Aurum and ICT continue to believe that the case against Tryden and ICT is without merit and will be lodging an appeal accordingly. Tryden and ICT have a one year period in which to launch their appeals.
In other relevant developments, ICT has recently lodged a claim against Kentor Gold Limited ("Kentor") for, amongst other things, breaches of certain provisions that have led to, and assisted in, the current Court processes against Tryden and ICT. Kentor, Tryden and ICT are the three shareholders in Andash Mining Company ("AMC"), the Company that holds the Andash asset, and the said breaches relate to provisions in the Charter of AMC by which, under the laws of the Kyrgyz Republic, all shareholders are bound.
Aurum continues to take legal advice on all related matters and, in addition to launching Tryden's appeal to the Supreme Court, intends to take appropriate action against all those responsible for bringing these hostile actions against Tryden.
A further announcement will be made at the appropriate time.
For further information:
Aurum Mining plc | Tel: 020 7499 4000 |
Chris Eadie, Chief Financial Officer |
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Arbuthnot Securities | Tel: 020 7012 2000 |
Richard Johnson |
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