8 Jun 2009 14:08
8 June 2009 Kryso Resources plc (`Kryso' or `the Company') Further re Equity Placing Agreement
- £250,000 worth of new ordinary shares issued under the Equity Placing Agreement with Orbis Equity Partners
- Funds to be applied to completion of the bankable feasibility study on the Pakrut gold project, expected before the end of 2009, and to ongoing resource definition drilling at Pakrut
Kryso Resources plc, the mineral exploration and development company with gold and nickel-copper projects in Tajikistan, is pleased to announce that an initial issue (`the Initial Issue') of £250,000 worth of new ordinary shares has taken place under the Equity Placing Agreement (`the EPA') with the Company's co-broker Orbis Equity Partners Limited (`Orbis').
The terms of the EPA provide for gross proceeds of up to £1.5 million, with minimum gross proceeds of £500,000. New ordinary shares issued under the EPA are priced at 5p per share, and warrants are granted to subscribers on the basis of one warrant for each new ordinary share subscribed for. The warrants are exercisable at a price of 8p per share at any time for a period of 24 months from the date of the EPA.
Subject to shareholder approval, a further £250,000 worth of new ordinary shares will be issued under the EPA in two tranches of £125,000 each. The first tranche of £125,000 worth of new ordinary shares is to be issued one month after the Initial Issue, and the second tranche will be issued two months after the Initial Issue. Thereafter, up to an additional £1 million worth of new ordinary shares may be issued under the EPA on the same terms, subject to agreement between the Company and Orbis and to shareholder approval.
Application will be made for the Initial Issue of 5 million shares to be admitted to trading on AIM with admission expected on 12 June 2009. No such application will be made in respect of the warrants.
Funds raised through the EPA will primarily be applied to the bankable feasibility study on Kryso's Pakrut gold project, which is targeted for completion before the end of 2009, and to ongoing resource definition drilling at Pakrut, which is expected to allow an increased JORC Code-compliant resource to be estimated for the deposit later in the year.
Trevor Davenport, Non-Executive Chairman and acting Managing Director of Kryso Resources plc, comments:
"The EPA with Orbis has provided Kryso with the funds required to continue the bankable feasibility study on the Pakrut gold project and to carry out extensive drilling at Pakrut, where a total of four drill rigs will shortly be operational."
About the Pakrut Gold Project
JORC Code-compliant resources at the Pakrut project currently total 21,383,902t at an average grade of 2.53g/t for 1,739,029oz Au, assuming a cut-off grade of 0.5g/t. Some 67 per cent of these ounces fall into the JORC Measured and Indicated categories. Estimated total reserves and resources at Pakrut under the Russian classification system stand at 2,055,047oz Au.
A bankable feasibility study for the Pakrut project based on a mining operation producing in excess of 100,000oz Au per annum is currently in progress, and is targeted for completion before the end of 2009. An internal pre-feasibility study was completed in early 2008, with highly positive results. Estimated cash costs under the internal pre-feasibility study were US$291/oz Au.
For further information please contact:
Dr. Trevor Davenport/Craig Brown, Kryso Resources plc. Tel:020 7371 0600
Roxane Marffy, Ruegg & Co Ltd.Tel:020 7584 3663Christian Dennis, Orbis Equity Partners Ltd.Tel:0203 137 1902Jason Bahnsen, Fox-Davies Capital Ltd.Tel:020 7936 5200
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