Manas Resources has almost completed the sale of its mineral assets in the Kyrgyz Republic to Chinese state-owned enterprise Guizhou Geological and Mineral Resources Development Company Limited (GGMRD) and its nominee, Tiandi International Mining Company Limited.
All shareholder and regulatory approvals have been obtained apart from the final approval required to remit foreign currency to settle the transaction.
In order to simplify the approval process, Manas, GGMRD and Tiandi have agreed to settle the remaining US$9.5 million purchase consideration in two instalments. Manas already holds a US$500,000 deposit.
Subject to execution of a binding deed of variation, Manas anticipates receipt of a first instalment amount of $US4.6 million on or prior to December 30, 2016, with the second and final instalment due and receivable no later than early April 2017.
The sale transaction will close upon execution of the binding deed of variation. Ownership of the Kyrgyz assets will then pass to GGMRD and Tiandi which will then be responsible for funding future Kyrgyz activities.
Manas will retain security over the shares in Manas Holdings (Kyrgyz) Pty Ltd until such time as the second and final instalment is received.
The company’s Kyrgyz assets include the Shambesai and Obdilla projects. There is a resource base of 1.8 million ounces at Shambesai with a bankable feasibility study confirming it as a low-cost, high-margin gold project that is technically simple and can be commissioned in a relatively short time frame for a low capital cost.