KGL 0.00% 10.0¢ kgl resources limited

Here's some more positive news for KGL with regard to...

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    Here's some more positive news for KGL with regard to Kyrgyzstan.

    http://www.proactiveinvestors.co.uk/companies/news/45430/chaarat-gold-shares-lifted-as-kyrgyzstan-project-back-on-track-45430.html

    “Shares in Chaarat Gold (LON:CGH) were lifted in morning trade on news that the development of the Tulkubash project is back on track as Kyrgyzstan looks set to adopt a clearer and more supportive mining law soon.
    The company now expects gold production at Tulkubash, part of the wider Chaarat project in the country, to start in the second half of 2013.
    By 11.10, the stock had risen 8.5 percent to trade at 23.875 pence.”

    "The group had told investors in April it had put the project on hold as it entered talks with the government after authorities put the fiscal regime governing mining companies under review.
    In the light of the latest developments, the group has now decided to lift the suspension of capital investment activities at Tulkubash.
    Chaarat said today the Kyrgyz President is set to ratify new legislation governing mining companies which has been approved by the Kyrgyz parliament and which, it believes, will give the country one of the more supportive legal regimes for the mining industry relative to other countries.

    In view of these favourable changes to the mining regime, the clarity they will bring and the removal of consequent uncertainty which has been brought to the phased development of the wider Chaarat project, the board has decided that it is no longer necessary to continue the direct negotiations with the government to develop an Investment Agreement.

    Chief executive Dekel Golan said: "We are pleased to report the Kyrgyz government has put in place steps to adopt a clearer and investor friendly mining legislative code. Our progress to production can now continue without the need for further negotiation on stabilisation with the Kyrgyz government."

    This won’t directly solve the minority local opposition to Andash, but it certainly helps with the overall political risk.
    The local opposition issues are being addressed through the new independent environmental review.
 
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