LONDON (Thomson Financial) - Oxus Gold Plc. said it plans to place between
$25 million and $35 million of convertible loan notes.
The company said it is also in the process of finalising a mandate with a
"leading" international bank to arrange about $150 million in project finance
for Amantaytau Goldfields to develop its phase 2 underground sulphides project.
Oxus also said that Zeromax GmbH has agreed to capitalise $3 million of
loans previously advanced to the company into new shares of 25 pence each.
The company said it will use proceeds of the notes to finance the
construction of a 1 million tonnes per year heap leach operation at Amantaytau's
Asaukak deposit, to produce about 30,000 ounces of gold per year at an estimated
cash cost of $400 per ounce, commencing in early 2009.
The proceeds from the notes will also be used to commence initial
development of the underground sulphides project at Amantaytau and to place
orders for certain long-lead time items of equipment and also to finance the
proposed exploration programme at Amantaytau for 2008.
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