Central Asia Gold enjoys profitable quarter 17:21, Thursday, 29 July 2004
Sydney - Thursday - July 29: (RWE) - During the June quarter, Central Asia Gold Ltd reported it agreed to accept a takeover offer by Centerra Gold Inc for its interest in AGR Ltd. The company received Centerra shares in consideration for accepting the offer. Central Asia subsequently agreed to sell those shares pursuant to the underwriting agreement entered into by Centerra (as part of its initial public offering). Central Asia received 3.83 million Centerra shares, which were sold at $C15.50 per share. (Centerra shares last traded at $C14.40). The transaction was settled in early July, with proceeds received of about $C59.4 million ($A63.7m), before underwriting fees. This represented a book profit of $A15.9 million, before underwriting fees and costs. Central Asia said it continued to make good progress in finalising the bankability feasibility study and associated approvals of its effective 51 per cent interest in the Taldy Bulak deposit in the Kyrgyz Republic. During the quarter, the company compiled a draft bankable feasibility study in accordance with the Kyrgyz authorities' requirements, and lodged it for approval. Approvals from both the ministry of environment and from Gozcortechnogoz (agency responsible for mining safety, health and dangerous goods) were received in May. The Kyrgyz Minerals Resources Commission has approved the resources, reserves and exploitation sections of the study. An operational plan (development schedule and work program) for the implementation of the Taldy Bulak Project has now been completed and is due for submission this month. Shares in Central Asia Gold closed up 1c to 49c today.
CGX Price at posting:
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