Mining and smelting concern Kazakhaltyn JSC explains situation with planned IPO KazakhGold in London
02.11.05 21:00
/KASE, November 2, 05/ - Mining and smelting concern Kazakhaltyn JSC
(Spepnogorsk of Akmolinsk oblast of Kazakhstan), whose bonds are traded
in Kazakhstan stock exchange's (KASE) official "A" listing category provided
KASE with explanations regarding planned public floatation of shares
KazakhGold in London stock exchange.
The company's official message says, that for attraction of money in the
world market shareholders of Mining and smelting concern Kazakhaltyn JSC
(hereinafter - Concern) created new company - КazakhGold, registered on
the territory of United Kingdom. This company will become owner of
Romanshorn LC AG (Kentucky, USA) - the only shareholder of Concern for
today.
As per recommendations of ING company - leading manager of forthcoming
IPO, it was decided instead of shares of KazakhGold to float among
investors Global Depositary Receipts (GDR), issued for these shares.
"KazakhGold will issue through IPO Global Depositary Receipts for
USD100.0 m., total it will be 25% shares, out of them 20% shares of new
emission and 5% existing shares", - Concern's message says.
Additional manager of forthcoming IPO Tri-Dialogue (Moscow) is elected,
legal advisors - Clifford Chance (United Kingdom) and Denton Wilde Sapte
(United Kingdom - Kazakhstan). Technical audit of Concern's geological
survey and production activity was held by Wardell Armstrong (United
Kingdom), financial audit - BDO (Kazakhstan, United Kingdom).
Owing to earned funds from sale of bonds at KASE in 2004-2005 start was
given and successfully four new projects on production modernization have
been realized, Concern informs. Particularly, two concentrating mills on
mines Aksu and Zholymbet with productivity 1m. tons and 0.5 m. tons of ore
processing a year correspondingly were reconstructed with transition of
technologies to direct ore cyanidation and processing of tails. On mines Aksu
and Bestobe objects of heap leaching with productivity 0.5 m. tons 1m. tons
of ore a year correspondingly were built and put in exploitation. Owing to
operation of new objects gold output in 2006 will be increased to 8.5 tons.
As Concern's reserves are estimated as considerable, its production
capacities allow to increase gold output. To reach this volume production
modernization program will be continued. This is construction in 2006 of new
factory on mine Bestobe with productivity 2.5 m. tones of ore a year and
object of heap leaching on mine Zholymbet with productivity 1 m. tones of
ore a year.
In conclusion Concern informs, that does not change its legal status and
through above described mechanism "the next year plans to become
participant of both markets - Kazakhstan (KASE), as well as London (LSE)".
[2005-11-02]