Gold producer Oxus Resources (OXUSF-O, OXS-L) has a final deal with affiliate Marakand Minerals (MRKMF-O, MKD-L) that will allow it to complete a sale agreement for Oxus’s putative interest in the Jerooy gold project in Kyrgyzstan.
KazakhGold Group (KZG-L) has agreed to take over Oxus’s stake in Talas Gold Mining, the joint venture with the Kyrgyz state gold mining agency Kyrgyzaltyn in which Oxus has a two-thirds interest and which formerly held a licence to develop Jerooy. KazakhGold issues 3.5 million of its shares to Oxus, which Oxus will convert to London-tradable Global Depository Receipts and issue out to its shareholders as a dividend. The shares are valued around US$82 million.
Should KazakhGold be able to recover Talas’s interest in Jerooy — currently the subject of arbitration proceedings — Oxus gets an additional US$80 million. Currently Kyrgyzaltyn and an Austrian company, Global Gold Holding, have a licence to develop Jerooy from the government, which cancelled Talas’s licence in late 2005 over Kyrgyzaltyn’s insistence that Oxus was in default of the project scheduling clauses in their agreement.
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