KazakhGold floated in London 25% shares

/INTERFAX-KAZAKHSTAN, Almaty, December 1, 05/ - Company KazakhGold (mother company of Mining-metallurgical concern Kazakhaltyn) made in London first public floatation (IPO) of 25% shares through global depositary receipts (GDR), representative of Kazakhaltyn management informed agency Interfax- Kazakhstan. According to his information, demand for securities of KazakhGold within IPO exceeded $1 bn. Other details of the deal the agency's interlocutor refused to inform, also did not call volume of earned funds through floatation. Meanwhile earlier it was informed, that KazakhGold intended to attract from floatation of GDR $176 m., having fixed price at the level $15 per security. Decision instead of shares to float among investors GDR, issued for these shares, was taken by KazakhGold by recommendation of company ING - leading manager of IPO of Kazakhstan company. One more manager of IPO is Russian Troika Dialogue. Number of GDR, offered for floatation, calculated 11.7 m. shares, which included 7.1 m. again issued common shares and 4.6 m. existing common shares. However GDR is equivalent of one common share. Meanwhile in its message, received by agency Interfax-Kazakhstan on Thursday, KazakhGold announced about inclusion of GDR in the official listing of British securities register and about admission to the trades on London stock exchange. As the message notes, since that time "official registration of deals on securities of KazakhGold on unlimited terms will start" under code "KZG" on London stock exchange. As it was informed, attracted from floatation funds the company intends to spend for redemption of borrowed funds and for expansion of extractive and processing capacities. As it is known, Kazakhaltyn within modernization of production this year completed realization of four big projects. So, this year two gold extractive factories (GEF) were put into operation: Aksu with productivity capacity 1 m. tons of ore a year and Zholymbet with productivity 520 th. tons of ore a year. It is planned to produce on GEF Aksu in a year 1.5 tons of gold as alloy Dore, on GEF Zholymbet - 1.7 tons. Besides, two complexes of gold heap leaching (CHL) were put into production operation on mines Aksu with productivity 500 th. tons of ore a year and Bestobe with productivity 1 m. tons a year. The company started realization of these projects last year. Funds for their financing in the amount over $35 m. Kazakhaltyn attracted by issue of bonds and owing to credits of Kazakhstan commercial banks. These projects, the company announced, will allow it to go from sales of production with low liquidity - float-concentrate, where content of gold is 30-90 g/tone. Besides, these new projects will allow to process accumulated within ten years wastes of gold extractive factories (tales of floatation), where gold content is 1-1.2 g/tone, and also to get ligature gold as alloy Dore. Meanwhile in 2006 году Kazakhaltyn intends to realize two more projects: to build GEF on mine Bestobe and CHL on mine Zholymbet. Details of these projects the company while does not reveal, it is planned to start them in nearest time. With realization of four first above projects total volume of output of gold containing production in 2005 is expected in the volume 2.8 tons, and in 2006 taking into account operation of two more above projects - 8.5 tons. [2005-12-01]