Mining and smelting concern Kazakhaltyn JSC explains situation with planned IPO KazakhGold in London

/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]