January 12,2010

Eyeing Gold Mine in Uzbekistan, Chinese Consortium Invest in AIM Quoted Oxus

By CSC staff, Shanghai

International law firm Pinsent Masons has advised a consortium of Chinese investors (Concert Party), led by Baiyin Non-Ferrous Group Co. Ltd and CITIC Construction Co Ltd on their conditional equity investment in AIM quoted Oxus Gold plc (

Oxus) for a total aggregate amount of approximately US$185 million (Financing).

 

Oxus Gold plc is the only publicly listed gold mining company with primary operations inside the Republic of Uzbekistan.  Founded in 1996, Oxus was admitted to London's Alternative Investment Market (AIM) in 2001.

 

Under the terms of the Financing, members of the Concert Party will make an investment in Oxus of approximately US$85 million by way of the issue of new Ordinary Shares in the company and convertible loan notes. In addition, members of the Concert Party will be granted warrants to subscribe for new Ordinary Shares in the company exercisable within five years of Admission for approximately US$20 million in return for an undertaking to arrange a further minimum of $80 million in project finance.

 

The Concert Party consists of Baiyin Non-Ferrous Group Co Ltd, CITIC Construction Co Ltd, and Chang Xin Yuan Su (Tianjin) Equity Investment Fund Management LP. Baiyin and CITIC are ultimately owned and controlled by the Government of the People's Republic of China. Chang Xin is a private equity fund registered in the People's Republic of China and managed by Long March Investment Consulting (Beijing) Co. Ltd.

 

The Pinsent Masons team advising the Concert Party was led by Corporate partners Jon Harris and Sean Page.

 

Commenting on the deal, Jon Harris said: "We are extremely pleased to have advised the Concert Party on its investment. The funds will be used to provide working capital to Oxus and to finance and develop its 50% owned Amantaytau Goldfields (AGF) joint venture in Uzbekistan, including the expansion of AGF's existing open pit heap leach mining operations, the development of one or more underground mines, and an accelerated exploration programme."

 

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