Disposal of Mongolian Assets

RNS Number : 0376M

Central Asia Metals PLC

11 September 2012

 



11 September 2012

Central Asia Metals plc

("CAML" or the "Company")

Disposal of Mongolian Assets

Central Asia Metals plc (AIM:CAML) is pleased to announce that it has signed heads of terms with Mongolian Resource Corporation ("MUB") for the sale of two of the Company's Mongolian projects, Ereen and Handgait, which were previously held for sale.

The Company has entered into an exclusive agreement with MUB for the sale of the Ereen Gold Project and the Handgait Molybdenum Project, along with site infrastructure.  MUB will acquire 100% of CAML Mongolia BV (a 100% subsidiary of CAML) which owns 85% of Ereen and 80% of Handgait. The acquisition is subject to documentation, satisfactory completion of due diligence and is subject to MUB securing financing for the acquisitions.

The Ereen Gold Project is located 5km from MUB's current Sujigtei mine and 14 km from its Kargana mine and where MUB is currently commissioning its Blue Eyes gold processing facility.

CAML completed an extensive exploration and core drilling programme at the Handgait Project in 2008 and a further 1,500 metre drilling campaign in September 2011 on an identified geological anomaly. The asset has a JORC compliant resource of 41,000 tonnes of contained Molybdenum and is located close to the Russian border.

The sale of the assets will allow CAML to focus on production at its recently commissioned SX-EW copper plant at Kounrad, Kazakhstan and the current drilling campaign at the Alag Bayan copper - gold anomaly in Mongolia and the Company will provide update on the disposals as the process progresses.

Enquiries:

Central Asia Metals plc                        Nick Clarke                   [phone]
Nigel Robinson

Canaccord Genuity Limited                 Andrew Chubb               [phone]
Rob Collins

Mirabaud Securities LLP                     Peter Krens                   [phone]

Pelham Bell Pottinger                         Charles Vivian                [phone]
Lorna Spears

 

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