Manas Resources advises that due diligence investigations for the proposed sale of its Kyrgyz Republic assets to a Chinese state-owned enterprise for cash consideration of US$10 million have been completed.
The Kyrgyz assets include the Shambesai Gold Project and nearby Obdilla Gold Project but the Savoyardy project is the subject of a separate sale agreement. Shambesai has 697,000 ounces of gold resources and Obdilla 485,000 ounces.
In August Manas signed a binding Term Sheet with Guizhou Geological and Mineral Resources Development Company Limited (GGMRD) for the sale of the Kyrgyz assets.
At the end of September GGMRD advised that it had been progressing due diligence on a number of fronts within the 30-day period, but required further time. After assessing the status of the investigations and taking into account the China National Day holiday period from October 1-7, the parties agreed to extend the period for completion of due diligence to October 10.
Manas advised on October 11 that these investigations had been completed by GGMRD to its satisfaction and that organisation would now finalise the process of seeking the various regulatory approvals required to complete the transaction.
The Term Sheet is now unconditional and subject to regulatory approvals only. Both parties are working towards settlement of the transaction around the end of November.
Manas intends to focus its efforts on the recently acquired Victoria Gold Project in Tanzania.