www.kryso.com
Kryso Resources plc is an AIM-listed mineral exploration and development company focused on projects in Tajikistan.
Kryso’s primary goal is to bring the Pakrut gold project, of which it has 100% ownership, into production. An internal prefeasibility study has been completed for the Pakrut project, with highly positive results, and a bankable feasibility study is currently underway with completion targeted for early 2010.
China’s CNMIM completes due diligence for £10.99m financing of Kryso Resources
Kryso Resources (LON:KYS) has announced that China Nonferrous Metals International Mining (CNMIM) has completed the due diligence process necessary to proceed with the £10.99 million investment in the company.
The company said that CNMIM confirmed that it had concluded its legal, financial and technical due diligence on Kryso “to its satisfaction”.
Back in late July, Kryso agreed to a conditional placing of 73.27 million shares at 15 pence each representing a 29.9% of the total issued share capital of the company to CNMIM, which has also been issued warrants - one for every ordinary share - as part of the placing, with a 21 pence exercise price.
The conditions that the subscription agreement still remains subject to include approval from Kryso’s shareholders and all appropriate authorities in China and admission of the shares to trading on AIM.
The proceeds will help fund the development, and further exploration, of the Pakrut gold project and further exploration at the Hukas nickel-copper project, both in Tajikistan.
The new investor intends to procure debt financing for no less than 70% of Pakrut’s development costs, within three months of the board approval of the bankable feasibility study (BFS). The debt financing would fund the constructing and commissioning of a mine at Pakrut.
Kryso has been finalising the expanded bankable feasibility study (BFS) on its 3Moz (million ounce) Pakrut gold project in Tajikistan. The study’s completion was expected earlier, however Kryso decided to extend the BFS to include the most recent drilling results which were ‘better-than-expected’.
According to Kryso, the latest results indicate excellent potential to expand the underground resource base.
“CNMIM is a global mining company with access to Chinese and overseas markets, resources and capital.
“Together we anticipate real progress towards production with CNMIM's commitment, if the placing successfully completes, to use its best endeavours to procure debt financing, for not less than 70% of the funding cost of the Pakrut gold project, for the construction and commissioning of a mine at the Pakrut gold project,” said Non-Executive Chairman of Kryso Resources Trevor Davenport.
Pakrut’s total JORC compliant resource currently stands at over 3.024Moz of gold. The company also anticipates further upgrades to Pakrut’s resource with the 2010 drilling programme well underway.
The project is located within the southern portion of the Tien Shan Fold Belt, north-east of Tajikistan’s capital, Dushanbe. The Tien Shan Fold Belt, extends from near the Aral Sea in Uzbekistan through the northern part of Tajikistan into China and then into Mongolia.
Shares in the company rose 4% on the news.
