Oxus Gold to offer stockholders 20 pct of Marakand shares

[G-khan]

(AFX-Focus) 2003-10-17 11:09 GMT: Oxus Gold to offer stockholders 20 pct of Marakand shares

LONDON (AFX) - Oxus Gold PLC said it plans to offer its shareholders one share in its unit, Oxus Minerals Corp Ltd, for every 10 shares held in the group.

The distribution represents about a 4 pct dividend to Oxus Gold shareholders at the share price currently valued at 20 pence each. This also represents about 20 pct of the unit, which will be renamed Marakand Minerals Ltd and be listed on AIM.

Oxus will remain the majority shareholder in Marakand with about 60 pct.

Marakand intends to complete a feasibility study on its high grade Khandiza zinc-silver deposit in Uzbekistan, with a view to commencing construction in the fourth quarter next year.

Oxus Gold CEO Bill Trew said: "Khandiza is an exceptional project and we are confident that it will generate outstanding returns to the Marakand shareholders, as well as adding further value to Oxus Gold."

In a separate statement, Oxus Gold said it has begun its preliminary construction work at the Jerooy gold project in Kyrgyzstan.

Production is planned at a rate of 1 mln tonnes per annum, commencing in mid-2005, producing some 180,000 ounces of gold per annum. About 120,000 ounces are attributable to Oxus.

A recently completed feasibility study identified that 56.9 mln usd pre-production capital expenditure would be required.

The project financing is expected to be completed by March 2004, enabling full construction to commence in April 2004, it added. newsdesk@afxnews.com shw