RNS Number : 0484S
Oxus Gold PLC
14 November 2011
Oxus Gold plc
("Oxus" or the "Company")
14 November 2011
Request for Restoration of Trading on AIM
As a result of the posting of the Company's report and accounts for the 12 months ended 31 December 2010 and the announcement of the Company's interim results for the six months to 30 June 2011 on 11 November 2011, the Company has requested that trading in its Ordinary Shares on AIM be restored. The restoration of trading of the Ordinary Shares is expected to take place from 1.15 p.m. on 14 November 2011.
As described in the Company's report and accounts for the 12 months ended 31 December 2010 and the interim results for the six months to 30 June 2011, the Company remains in dispute with the Uzbek Government. The Ministry of Finance of the Republic of Uzbekistan is claiming US$10.84 million from the Company in respect of the AGF Phase 2 Project Development Fund (the "Fund") and has obtained a judgment in its favour in the Uzbek courts, which it is seeking to enforce in the English courts. The Company is vigorously defending the claim.
Furthermore, in 2011, Oxus retained the international law firm Amsterdam & Peroff LLP to protect the interests of Oxus and its shareholders against the wrongful conduct of the Uzbek Government, and to pursue the legal remedies available to Oxus. Oxus' subsequent attempts to discuss and resolve the issues with the Uzbek Government proved unproductive. Consequently, on 31 August 2011, Oxus served a Notice of Arbitration on Uzbekistan under the Agreement for the Promotion and Protection of investments dated 24 November 1993 between the United Kingdom and the Republic of Uzbekistan (the Investment Treaty). Among other things, the Investment Treaty requires the Uzbek Government to treat Oxus fairly and equitably as an investor, to refrain from discriminating against Oxus, and to provide Oxus with full protection and security. Oxus asserts in the arbitration that the conduct of the Uzbek Government constitutes a systematic violation of the Investment Treaty, and that Oxus is entitled, in addition to other relief, to full compensation for its injuries in an amount estimated to be no less than US$400 million. This amount includes a claim in respect of the Khandiza base metals project, which the Uzbek Government took from Marakand Minerals in 2006 without offering any compensation at the time.
The filing of the Notice of Arbitration represents significant progress toward obtaining redress for Oxus and its shareholders, and comes as a result of considerable effort by Oxus personnel and its international legal counsel. The Board is confident of the strength of Oxus' claims, and pleased with the progress of the arbitration. Nevertheless, the Company remains open to a resolution of the dispute on fair and equitable terms.
The directors continue to undertake appropriate measures in order to preserve cash until such time as the Group's operations are fully funded and the dispute with the Uzbek Government has been resolved. At 21 October 2011, the Group's cash resources stood at approximately US$3.0 million.
The future of the Group and its principal activities remain materially uncertain depending on the outcome of the dispute with the Uzbek Government, the consequence of any Court action in the English courts and the result of the Group's arbitration claim. However, the Directors have a reasonable expectation that the Group and the Company have adequate resources to continue in operational existence for the foreseeable future.
Oxus Gold plc
+44 (0)20 7907 2000
Fairfax I.S. PLC
Nominated Adviser and Broker
+44 (0)20 7598 5368
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