RNS Number:7199T
Oxus Gold PLC
06 May 2008
OXUS GOLD PLC
Arbitration with Kyrgyz Republic suspended pending withdrawal of claim
LONDON: 6 May 2008 - Oxus Gold plc ('Oxus' or the 'Company') (OXS.L) announces
that it has reached agreement to settle its claim in arbitration against the
Kyrgyz Republic under the United Kingdom - Kyrgyz Republic Bilateral Investment
Treaty (the 'Arbitral Claim').
The Arbitral Claim has been suspended pending an agreed cash settlement to be
made on or before 15 May 2008 (the "Settlement"). Upon receipt of the
Settlement, the Arbitral Claim will be withdrawn.
Oxus has been seeking to recover its loss of profits arising from the
cancellation of the mining license for the Jerooy gold project in the Kyrgyz
Republic, less the amount Oxus has already received in mitigation as a result of
the sale in May 2007 of Norox Mining Company Limited and other assets to
KazakhGold Group Limited ('KazakhGold') in exchange for shares in KazakhGold
valued at approximately $73 million.
Oxus has retained its rights to the potential deferred consideration of up to
$80 million payable by KazakhGold in the event that KazakhGold or a nominee
acquires, or acquires the benefit of, a license to enable it to continue with
the development of the Jerooy gold project.
Richard Wilkins, CEO of Oxus, stated "I am very satisfied that this matter has
now been dealt with. This arbitration represented the last of the various costly
litigations that have distracted Oxus in recent years. The transaction with
KazakhGold recovered our expenditure on Jerooy, and this settlement generates
additional recovery. We avoid the prospect of a long drawn-out claim, and we
have retained the potential upside of the deferred consideration if KazakhGold
were to become involved in the development of the Jerooy project. This
settlement will further enhance our ability to focus on the development of our
underground mine at Amantaytau Goldfields in Uzbekistan, which asset without any
doubt represents the future of our Company."
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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