11 Mar 2009 07:00
11 March 2009 Kryso Resources plc ('Kryso' or 'the Company') AIM: KYS Proposed Financing Update
- Legal, financial and technical due diligence on Kryso carried out by Vertex Mining International (Cyprus) Limited
- Proposed placing of new ordinary shares at 8.78 pence per share to raise approximately £2.56 million pursuant to the conditional subscription agreement as announced on 16 February 2009 is anticipated by the board of Kryso to close before 15 May 2009
Kryso Resources plc, the mineral exploration and development company with gold and nickel-copper projects in Tajikistan, is pleased to announce that pursuant to the conditional subscription agreement (the 'Subscription Agreement') entered into on 13 February 2009 with Vertex Mining International (Cyprus) Limited ('Vertex Mining Cyprus'), formerly known as Naveen Holdings Limited, confirmation has been given under the Subscription Agreement by Vertex Mining Cyprus that it is satisfied with the outcome of its legal, financial and technical due diligence on the Company.
Subject to the satisfaction of the remaining conditions contained within the Subscription Agreement and summarised in the announcement by Kryso dated 16 February 2009, the proposed placing of new ordinary shares to Vertex Mining Cyprus at 8.78p per share to raise approximately £2.56m before expenses and the associated issue of warrants to subscribe for additional new ordinary shares at 8p is anticipated by the board of Kryso to occur before 15 May 2009.
Kryso has been provided, as announced on 16 February 2009, with initial financing of £500,000 at 5.5p per share through a mandatorily convertible loan. The average price per share of the proposed £2.56m placing and mandatorily convertible loan is 8p.
Vassilios Carellas, Managing Director of Kryso Resources, comments:
'The completion of due diligence to its satisfaction by Vertex Mining Cyprus is a significant step towards the full realisation of the proposed financing announced on 16 February 2009. That legal, technical and financial due diligence has been carried out within a relatively short time frame is testament to the dedication of the teams on both sides.
The involvement of advisers including BDO Stoy Hayward, Orrick, Herrington & Sutcliffe and Grata on behalf of Vertex Mining Cyprus demonstrates both the commitment of Vertex Mining Cyprus to the transaction and the professionalism with which Kryso has undertaken the development of its projects in Tajikistan.
The proceeds of the proposed £2.56m placing at 8.78p per share, a substantial premium to Kryso's current share price, will be applied primarily to the completion of the bankable feasibility study on the Pakrut gold project and to the definition of additional reserves/resources at Pakrut.
Overall it is anticipated that the proposed financing with Vertex Mining Cyprus will expedite the progress of the Pakrut gold project towards production.'
For further information, please contact:
Vassilios Carellas/Craig Brown, Kryso Resources plc
Tel: 020 7371 0600
Brett Miller/Roxanne Marffy, Ruegg & Co Ltd.
Tel: 020 7584 3663
Jason Bahnsen, Fox-Davies Capital Ltd.
Tel: 020 7936 5200
Christian Dennis, Orbis Equity Partners Ltd.
Tel: 020 3178 3977
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