Oxus Mining Plc
15 January 2003
OXUS MINING APPOINTS STANDARD BANK AND WESTLB TO ARRANGE NEW PROJECT FINANCE
Oxus Mining plc ('Oxus') (OXS.L) is pleased to announce that on 14 January 2003
it appointed Standard Bank London Limited ('Standard Bank') and WestLB AG ('West
LB') to act jointly as exclusive lead arrangers and underwriters in respect of a
project finance facility of up to US$30 million. The facility will be used to
fund the development of the Amantaytau Goldfields Phase 1 (Oxides) Project in
The facility is conditional upon underwriting and the satisfaction of certain
conditions precedent. Assuming these conditions precedent are met, drawdown is
expected to take place in March 2003.
Amantaytau Phase 1, a 1 million ounce open pit gold project, is Oxus' most
advanced project. It is located within the 192 square kilometre licence area of
Amantaytau Goldfields, a 50/50 joint venture between Oxus and the Uzbek
Government, just 30 kilometres from Muruntau, one of the world's largest open
pit gold mines.
It was originally proposed that the project would be developed using Heap Leach
technology. However, Oxus has revised its development strategy and it is now
proposed to utilise contract mining with processing through a conventional
milling and Carbon-In-Pulp (CIP) treatment plant. The revised strategy will
ensure that the capital expenditure required for the development of the project
will fall within the US$30 million being arranged by Standard Bank and West LB
and will significantly increase gold recoveries.
The design and construction of the plant has already commenced and the first
gold pour is scheduled for the last quarter of this year. The feasibility on
the Amantaytau Phase 2 (Sulphides) Project will start shortly and this project
is expected to produce an additional 2.03 million ounces over 10 years.
15 January 2003
Oxus Mining plc Tel: +44 (0)1483 714411
John Donald, COO
Brown Shipley Corporate Finance Tel: +44 (0)20 7606 9833
Further information can be obtained by visiting the Company's website:
The Company can also be contacted by e-mail: email@example.com
The Standard Bank Group has total assets of US$33 billion and employees in
excess of 35,000 people worldwide. It is one of the emerging market's leading
banking and financial services organisations and is a leading participant in
trade finance, precious and base metals trading and project finance with a
strong mining capability based in London.
WestLB is Germany's 4th largest banking group and is rated AA+ / AA1 by Standard
& Poors and Moodys respectively. WestLB is fast developing into a major force
in the Metals & Mining Sector, with an ability to provide project and structured
finance, corporate debt, structured trade and commodity finance, and metals
hedging facilities in all three major time zones. WestLB has a long history
over many years of providing commodity receivables-based finance to metals and
mining clients throughout the Former Soviet Union, and Amantaytau represents a
logical step towards project financing new production over the longer term.
This information is provided by RNS
The company news service from the London Stock Exchange