Hambledon Mining plc which is developing precious metal deposits in Kazakhstan has discontinued negotiations with a second Kazakh company it was negotiating with for another project acquisition in Kazakhstan.

Funds that had been allocated for this acquisition will be utilised to accelerate the development of Hambledon's Sekisovskoye project and the exploration of the adjacent prospects.

The company says plans for the development of the underground mine at Sekisovskoye, which will significantly raise the gold grade and output, are now well in hand.

The Ognevka processing plant, which was acquired in January, is being refurbished and will produce concentrates containing gold, silver, copper and iron, and coke from the retreatment of zinc smelter residues.

Hambledon CEO Nicholas Bridgen says: "It is disappointing that we could not bring the negotiations for the second acquisition to a conclusion but it does mean that our existing projects at Sekisovskoye and Ognevka are now fully funded.

"We have been working on the underground project for some time, and we can now complete the final design and obtain the appropriate approvals."