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Legendary Invest PLC (LEG)

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Thursday 05 July, 2012

Legendary Invest PLC

Investment in Energy Asset

RNS Number : 9480G
Legendary Investments PLC
05 July 2012
 



5 July 2012

Legendary Investments Plc

 

("Legendary" or the "Company")

 

Investment in Energy Asset

                                                                                                                                                                        

Legendary is pleased to announce that it has invested £100,000 in cash into Kyrgyzstan based Manas Minerals LLC ("Manas Minerals"). Manas Minerals owns the Padsha Ata Licence to mine for coal in the Chatkal Ridge in the Asksy region of Jalal-Abad, Kyrgyzstan. Existing Soviet surveys suggest that the region contains 182 million tonnes of coal reserves of which 116 million are in the P1 and P2 categories according to the Russian standard for resource reporting.* 

An internationally recognised firm of consultants has been engaged to confirm the Soviet surveys. A specialist engineering firm is carrying out a works program on Padsha-Ata. This program includes profiling, trenching, drilling and the improvement of site access, and is expected to be completed later this year. The results of qualitative studies conducted to date indicate the coal to be of high calorific value, with energy values in excess of 25 MJ/kg and low ash and sulphur content.  

The intention is to seek further licences in the region, certain of which have already been identified, and combine them into a single combine. Jalal-Abad is strategically located within in 200 km of the Chinese border.

Legendary's investment is by way of a convertible loan note which when converted is expected to result in Legendary having a 1.0% stake in Manas Minerals. In addition, Legendary has an option with an exercise price of £50,000 which upon exercise would result in Legendary having an additional 0.5% stake in Manas Minerals or equivalent thereof in any successor entity.

Value crystallisation is expected through the capital markets in the next 12 months or so.

 

Contact:



Legendary Investments Plc

Zafar Karim / Rajesh Rai / Thomas Reuner

 

020 8201 3536

Grant Thornton Corporate Finance

 

Colin Aaronson/ Melanie Frean

 

020 7383 5100

 Simple Investments                

Nick Emerson/ Andrew Thacker

01483 413500

 

* These resources may be classed as "historic" and are not directly equivalent to Western resources estimates (CRIRSCO, JORC etc).  However, when verified by check drilling and sampling the P1 resources would probably be equivalent to Inferred Resources whilst P2 would probably correspond with an Exploration Target.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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