Termination of the Principal Agreement

RNS Number : 8996C

KazakhGold Group Ltd

14 March 2011

 



For immediate release

14 March 2011

Termination of the Principal Agreement
with AltynGroup Kazakhstan LLP

Further to the announcement made on December 8, 2010, KazakhGold Group Limited ("KazakhGold") hereby announces that it has terminated the Principal Agreement with AltynGroup Kazakhstan LLP ("AltynGroup") dated December 8, 2010 (the "Principal Agreement") as the first tranche completion was not achieved by the first tranche cut-off date, being three and a half months from 23 November 2010 (11 March 2011).  KazakhGold notes that AltynGroup did not manage to raise the required financing prior to the first tranche cut-off date.   

As a result of the termination of the Principal Agreement, including its exclusivity provisions, the Board of Directors intends to explore other opportunities with respect to the sale of the company's assets in Kazakhstan. Further, even though the transaction envisaged by the Principal Agreement will not proceed, KazakhGold remains in discussions with the Assaubayev family.

Enquiries:

KazakhGold
Alexey V. Chernushkin, Director, Capital Markets and IR       [phone]

 

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