Re: Convertible Loan Notes

29 Apr 2008 14:04

Oxus Gold PLC29 April 2008 OXUS GOLD PLC Proposed Placement of Convertible Loan Notes Issue of New Shares LONDON: 29 April 2008 - Oxus Gold plc ("Oxus" or the "Company") (OXS.L) ispleased to announce its intention to place between US$25 million and US$35million of convertible loan notes (the "Notes"). The Company is also in theprocess of finalising a mandate with a leading international bank to arrangeapproximately $150 million in project finance (the "Project Finance Facility")for Amantaytau Goldfields ("AGF") in order for AGF to develop its Phase 2underground sulphides project. The Notes will carry an 8% coupon and will be convertible into new ordinaryshares of the Company at 37 pence per share. At the holder's option the Notesmay be converted on the earlier of a written request from the holder to convert,or first drawdown on the Project Finance Facility. The Notes may also beredeemed on the earlier of first drawdown on the Project Finance Facility, orafter two years from the date of issuance. It will be a condition precedent todrawdown on the Notes that the mandate to arrange the Project Finance Facilityhas been signed. The proceeds of the Notes will be used (i) to finance the construction of a onemillion tonnes per year heap leach operation at AGF's Asaukak deposit, toproduce approximately 30,000 ounces of gold per year at an estimated cash costof $400 per ounce, commencing in early 2009; (ii) to commence initialdevelopment of the underground sulphides project at AGF and to place orders forcertain long-lead time items of equipment; (iii) to finance the proposedexploration programme at AGF for 2008; and (iv) for general working capital. First drawdown on the Project Finance Facility is currently expected to occur inOctober or November 2008, and first production from the underground sulphidesproject is currently forecast for Q3 2009. Further details of the undergroundsulphides project will be announced following the completion in May 2008 of thebankable feasibility study currently being updated by Wardell ArmstrongInternational. The underground sulphides project is expected to increase AGF'sproduction to approximately 300,000 ounces of gold per year from 2010Oxus owns 50% of AGF. Oxus also announces that Zeromax GmbH has agreed to capitalise $3 million ofloans previously advanced to the Company into new ordinary share of the Companyat 25 pence per share. Zeromax will be issued with 6,030,151 shares in theCompany, following which Zeromax will own a total of 68,533,797 shares in theCompany, representing 18.10% of the enlarged outstanding share capital of378,717,611 shares. Application has been made for the 6,030,151 shares to be admitted to trading on the AIM market of the London Stock Exchange and dealings are expected to commence on 6 May 2008. The new shares will rank pari passu with existing ordinary shares. OXUS GOLD PLC Tel: +44 (0) 207 907 2000Jonathan Kipps - Finance DirectorRichard Wilkins - Chief Executive Officer CANACCORD ADAMS LIMITED Tel +44 (0) 207 050 6500Mike JonesRobin Birchall BANKSIDE CONSULTANTS Tel: +44 (0) 207 367 8888Keith IronsOliver Winters This information is provided by RNS The company news service from the London Stock Exchange