RNS Number : 4219U
Oxus Gold PLC
14 May 2008
OXUS GOLD PLC
Issue of Convertible Loan Notes
LONDON: 14 May 2008 - Oxus Gold plc ("Oxus" or the "Company") (OXS.L) announces that it
has completed a placement of 8.0% unsecured
convertible loan notes in units of $250,000 each at par, due 2010 (the "Notes"), for gross
proceeds of $18.5 million. The Notes have been
issued to existing institutional and strategic shareholders and to new institutional
investors.
The Notes are convertible into new ordinary shares of the Company at a price of 37 pence
per share. At the holder's option, the Notes
may be converted on the earlier of a written request from the holder to convert, or first
drawdown on the project finance facility to
construct the underground sulphides project at Amantaytau Goldfields ("AGF"). The Notes may
also be redeemed on the earlier of first
drawdown on the project finance facility, or two years. If all the Notes are converted, the
maximum number of new shares that would be
issued is 26,315,789.
Oxus has mandated the Royal Bank of Scotland to arrange a project finance facility of
approximately US$150 million on behalf of AGF.First drawdown on the facility is currently expected to occur by November 2008.
Richard Wilkins, CEO of Oxus, commented: "I am very pleased that we were able to conclude
this issue in the context of the current
market. This placement of loan notes, although less than we had originally proposed to raise,
is still sufficient to enable AGF to proceed
with the development of the underground sulphides project, ahead of drawdown on the RBS
facility, and in order for AGF to meet its first
underground production target of Q3 2009. It will also enable AGF to construct the heap leach
operation at Asaukak, and to progress its
exploration programme. I believe that the Company has now entered a new phase of its
development, one that will see our attributable gold
production increase significantly, and with it our profitability. We will also have financed a
major capital expenditure programme with
minimum dilution to our shareholders."
OXUS GOLD PLC Tel: +44 (0) 207 907 2000
Jonathan Kipps - Finance Director
Richard Wilkins - Chief Executive Officer
CANACCORD ADAMS LIMITED Tel: +44 (0) 207 050 6500
Mike Jones
Robin Birchall
BANKSIDE CONSULTANTS Tel: +44 (0) 207 367 8888
Keith Irons
Oliver Winters
This information is provided by RNS
The company news service from the London Stock Exchange
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