Disposal

22 Feb 2007 07:01

Trans-Siberian Gold PLC22 February 2007 Trans-Siberian Gold plc Sale of Krasnoyarsk properties - update LONDON: 22 February 2007 - Trans-Siberian Gold plc ("TSG" or "the Company")(TSG.L) reports that it has been advised by AngloGold Ashanti Limited ("AGA")that the South African Reserve Bank ("SARB") has approved the acquisition by AGAof the Company's two Krasnoyarsk based subsidiaries, OOO GRK Amikan ("Amikan")and OOO AS Angarskaya Proizvodstvennaya Kompaniya ("AS APK"). Following SARB approval, AGA will now make an initial payment of US$8.7 millionof the total sale consideration of US$40 million. Also following SARB approval,AGA will now make available facilities, guaranteed by the Company, of up to US$4million and US$1 million to Amikan and AS APK respectively to fund theirexploration expenditure with effect from 1 November 2006 and theiradministration costs with effect from 1 December 2006. As further reported on 12 February 2007, the sale consideration is more than 75%of the Company's current market capitalisation and consequently completion ofthe transactions is conditional on the approval of TSG shareholders. A circularoutlining the terms of the transactions together with a notice calling an EGM toapprove the transactions is expected to be sent to shareholders next week. Thedisposals are also conditional upon the approval of certain other mattersincluding an extension to the mining licence at Amikan's Veduga property and thenecessary regulatory approvals in Russia. Further announcements in respect of the satisfaction of the remaining conditionsto the completion of the sale of the Krasnoyarsk companies will be made in duecourse. Ends Contacts: TSGSimon Olsen +44 (0) 1223 265760/ (0) 7770 484965 Seymour PierceStuart Lane +44 (0) 20 7107 8000 BanksideKeith Irons +44 (0) 20 7367 8873 Oliver Winters +44 (0) 20 7367 8874 This information is provided by RNS The company news service from the London Stock Exchange