Agreement reached to sell Tochtar subsidiary
21 February 2011
CENTRAL ASIA METALS PLC
("CAML" or the "Company")
Agreement reached to sell Tochtar subsidiary
Central Asia Metals PLC,(AIM:CAML), a mining exploration and development company focused on base and precious metals in Central Asia, is pleased to announce that it has reached an agreement for the sale of its subsidiary, Tochtar LLP.
In line with the corporate strategy outlined at the time of the Initial Public Offering (IPO) in September 2010, the Tochtar subsidiary has been sold to Wildorf Holding Limited for an agreed consideration ofUS$2.5m, consisting of US$825,000 in cash and US$1,675,000 of historical cost liabilities.
The agreed price is for 100% of the asset and completion of the transaction is contingent upon receiving Article 71 clearance from the Kazakhstan Government.
The Chief Financial Officer of CAML, Nigel Robinson, commented;
"Following on from our decision to cease mining operations at Tochtar in 2009 we are delighted to have sold Tochtar. The deal removes the potential historical cost liabilities and will enable the CAML management to focus 100% in Kazakhstan on the delivery of the Kounrad SXEW Copper project"
Enquiries:
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Central Asia Metals Nick Clarke, CEO Nigel Robinson, CFO |
+44 (0)20 7183 5402 |
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KPMG Corporate Finance Nominated Adviser Susan Walker |
+44 (0)20 7311 1000 |
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Mirabaud Securities LLP Broker Peter Krens |
+44 (0)20 7321 2508 |
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Pelham Bell Pottinger Charles Vivian Danielle Walsh |
+44 (0)20 7861 3867 / +44 (0) 7859 048 228 |
Overview of Central Asia Metals
Central Asia Metals Plc currently has interests in a number of copper, gold and molybdenum mining exploration and development assets in Kazakhstan and Mongolia.
In Kazakhstan, the Company has advanced plans for the construction of a plant at the former Kounrad copper mine that will have the capacity to deliver 10,000 tonnes per annum of near term, low-cost copper production. CAML plans to construct the plant with a joint venture with a local Kazakh government entity, Saryarka. Kounrad was formerly an open-pit copper mine that was operated between 1936 and 2005. The site around the mine contains a number of dumps of waste material from the mine from which copper can be extracted through an in-situ leaching process followed by Solvent Extraction - Electro-Winning (''SX-EW''). Initial construction ground-works for the commercial SX-EW plant have already been started and production at the plant is expected to commence in the fourth quarter of 2011.
Central Asia Metals also has exploration opportunities in the region. One of these is Alag Bayan, an early stage exploration project in Mongolia, where the Company is focused on outlining a potentially significant copper/gold porphyry target. This asset is situated close to the Oyu Tolgoi copper mine being developed by Rio Tinto and Ivanhoe Mines. In addition Central Asia Metals plans to develop further its molybdenum exploration project, Handgait, and its gold exploration project, Ereen, both located in Mongolia.
The Company has an experienced management team that has a proven track record of developing and commercialising mining opportunities in Central Asia. Central Asia Metals plans to use this experience to look at additional opportunities in the region and is already in early stage discussions in respect of a new exploration and development opportunity.
Further details about Central Asia Metals can be found on the Company's website: www.centralasiametals.com
This information is provided by RNS