05 July 2007
5 July 2007
Kazakhmys PLC offer for Eurasia Gold Inc. is successful
Kazakhmys PLC ("Kazakhmys") (LSE:KAZ) announced today that shareholders holding
326,598,851 ordinary shares in the capital of Eurasia Gold Inc. ("Eurasia"),
representing 96.34% of the outstanding Eurasia shares, have accepted the offer
dated 15 May 2007, as varied and extended on 21 June 2007, of Kazakhmys Gold
Inc., an indirect wholly-owned subsidiary of Kazakhmys, for 100% of the Eurasia
shares (the "Offer").
Kazakhmys confirmed that all conditions of the Offer have been waived or
satisfied, that Kazakhmys Gold Inc. has taken-up the shares validly deposited
under the Offer and that it intends to pay for such shares on 5 July 2007.
Since the Offer was accepted by holders of more than 90% of the Eurasia shares,
Kazakhmys intends to commence a compulsory acquisition of the remaining Eurasia
shares not already owned by Kazakhmys at the same price of Cdn$0.85 for each
Eurasia share. It is expected that an announcement regarding the compulsory
acquisition will be made shortly and that the compulsory acquisition will be
completed in September 2007.
Oleg Novachuk, Kazakhmys' Chief Executive said:
"We are pleased that the offer has already been accepted by over 96% of Eurasia
shareholders. As part of Kazakhmys, Eurasia will be able to fully realise its
potential and become the core part of a growing precious metals division. The
acquisition of Eurasia is consistent with our diversification strategy, to which
we remain fully committed "
For further information please contact:
John Smelt, Head of Corporate Communications Tel:+44 20 7901 7882
Sergei Stephantsov, Investor Relations Manager
Kazakhmys PLC Tel:+44 20 7901 7800
Finsbury Tel:+44 20 7251 3801
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Notes to Editors
Kazakhmys is a London-listed natural resources company with primary operations
in Kazakhstan and Germany. Kazakhmys' operations are vertically integrated and
its principal business is the mining, processing, smelting, refining and sale of
copper and copper products as well as various by-products such as zinc, gold and
silver. Kazakhmys operates 19 open pit and underground mines and two smelting
and refining complexes in Kazakhstan and a copper products fabrication company
In 2006 Kazakhmys produced 106,900 ozs of gold including 58,600 ozs from tolled
Kazakhmys is listed on the London Stock Exchange under the symbol KAZ. For
further information, visit the website at www.kazakhmys.com.
Kazakhmys Gold Inc. is a company incorporated under the laws of British Columbia,
Canada. Its registered and records office is located at Suite 2600, Three
Bentall Centre, P.O. Box 49314, 595 Burrard Street, Vancouver, British Columbia,
V7X 1L3, Canada.
About Eurasia Gold Inc.
Eurasia has estimated resources of approximately 1.9 Moz of gold and gold
equivalent (Measured & Indicated by JORC and C1 Former Soviet Union standard).
Approximately half of these resources are located in Kazakhstan, with the
remaining resources located in Kyrgyzstan. In addition, there is a high-grade
silver deposit in Tajikistan.
Eurasia offers a well-balanced portfolio of commercial mining, new development
and exploration opportunities, as well as a proven track record of bringing
development assets into production. Eurasia will put new development assets into
construction in 2007/2008, with first production expected in 2009/2010.
According to its public disclosure record, Eurasia sold 44,989 oz of gold in
Forward looking information
This press release contains certain forward-looking information and statements
within the meaning of applicable securities laws relating, but not limited, to
operations, anticipated or prospective financial performance, results of
operations, business prospects and strategies of Kazakhmys. Forward-looking
information typically contains statements with words such as "consider",
"anticipate", "believe", "expect", "plan", "intend", "likely" or similar words
suggesting future outcomes or statements regarding an outlook on future changes
in volumes, freight rates, costs, achievable cost savings, the estimated amounts
and timing of capital expenditures, anticipated future debt levels and incentive
fees or revenue, or other expectations, beliefs, plans, objectives, assumptions,
intentions or statements about future events or performance.
These statements are subject to known and unknown risks, uncertainties and other
factors that could cause actual results to differ materially from those
suggested by the forward-looking statements. Although Kazakhmys believes it has
a reasonable basis for making the forecasts or projections included herein, you
are cautioned not to place undue reliance on such forward-looking information.
By its nature, the forward-looking information involves numerous assumptions,
inherent risks and uncertainties, both general and specific that contributes to
the possibility that the predictions, forecasts and other forward-looking
statements will not occur. Kazakhmys undertakes no obligation, except as
required by law, to update publicly or otherwise revise any forward-looking
information, whether as a result of new information, future events or otherwise,
or the above list of factors affecting this information.
This information is provided by RNS
The company news service from the London Stock Exchange