Partners Central Asia Goldfields (CDN) and Kazakhstani-based BSB have been awarded a contract for the management and purchase of Kazakaltyn, a gold mining company based in Kazakhstan.
Kazakaltyn holds several gold properties in the country, including the Bestobe, Aksu and Zholymber mines. The mines have produced more than 10 million oz. over the past 60 years.
In 1991, the mines produced more than 250,000 oz., though production fell to 100,000 oz. in 1995 as a result of inadequate working capital. Minable reserves exceed 1.5 million oz.
The joint venture has 30 days in which to conduct a due diligence review before paying US$5 million, which will be added to working capital. The joint venture can then continue its management-operator role by making two additional payments of US$5 million each, which will be applicable to the purchase price of Kazakaltyn, which is expected to be US$20 million.
Central Asia reports that compilation work is also under way on four of the partners’ other exploration licences. Drilling is in progress.
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