DUSHANBE, July 30, 2010, Asia-Plus — China Nonferrous Metals Int’l Mining Co. Ltd (CNMIM) is expected to explore gold deposit in Tajikistan.
Kryso Resources plc, the mineral exploration and development company with gold and nickel-copper projects in Tajikistan, announced on July 27 that it entered into a conditional subscription agreement with CNMIM.
According to Kryso resources plc, pursuant to the agreement, assuming satisfaction of all conditions, CNMIM will subscribe for 73,269,539 placing shares (subject to adjustment so that the number of new ordinary shares subscribed shall represent, on completion of the placing, 29.9% of the total issued shares of the Company) at 15p per share to raise £10,990,430.85 before expenses.
CNMIM will procure an offer of debt financing for the Company within three months of the board approval of the bankable feasibility study for not less than 70% of the funding cost of the Pakrut gold project, which funds would be used for the purposes of constructing and commissioning a mine at the Pakrut gold project.
Commenting on the agreement, Mr. Trevor Davenport, Chairman and acting Managing Director of Kryso Resources, noted, “CNMIM is supportive of Kryso”s primary objective, to develop the Pakrut gold project to commercial production at the earliest opportunity, and we are confident that CNMIM will be able to source the necessary financing for the Company to fulfill this objective.”
For his part, Mr. David Tang, President of CNMIM said, “We are delighted to be making the proposed investment in Kryso and look forward to working with the Company to develop the full potential of the Pakrut project.”
CNMIM, whose principal shareholder is China Nonferrous Metals Mining (Group) Co., Ltd, is a global mining company. Established in 2002, CNMIM is focused on the development of major nonferrous and precious metal projects outside China. CNMIM has access to Chinese and overseas markets, resources and capital.
The Pakrut gold project, of which Kryso has 100% ownership, is situated in Tajikistan approximately 112 kilometers northeast of Dushanbe. Pakrut has total JORC Code-compliant Mineral Resources of 3,024,000 oz Au (assuming a cut-off grade of 0.0g/t Au) and is located within the Tien Shan gold belt, which extends from Uzbekistan into Tajikistan, Kyrgyzstan and western China, and which hosts a number of multi-million ounce gold deposits.
