Manas Resources has completed the sale of its Kyrgyz Republic mineral assets to Chinese state-owned enterprise Guizhou Geological and Mineral Resources Development Company Limited (GGMRD) and its nominee, Tiandi International Mining Co Ltd.

Following execution of a Deed of Amendment, completion of the sale transaction was effected on December 23, 2016, with Manas receiving the first instalment proceeds of US$4.6 million after earlier receiving the deposit of US$500,000. Manas expects the second instalment of SU$4.9 million to be received no later than early April 2017.

As a result of the transaction completing, Manas’ Kyrgyz assets, except Savoyardy, have passed to GGMRD and Tiandi which are now responsible for funding future Kyrgyz activities.

These 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.

Manas retains security over the shares in Manas Holdings (Kyrgyz) Pty Ltd until such time as the second and final instalment is received.

In a second, separate transaction, Manas has sold its Savoyardy assets to a local Kyrgyz company, NewGeo Technology LLC for a nominal amount. Manas will receive the net proceeds from any future on-sale by NewGeo.

With the sale of its Kyrgyz assets completed Manas’ focus will now be on completion of the Victoria Gold Project acquisition in Tanzania.

Manas chairman Mark Calderwood said, “The successful completion of the Kyrgyz asset sales is the culmination of more than a year’s effort by the Manas team which I believe is a very credible outcome given the significant challenged involved in the transaction.

“The cash received from the sales process leaves Manas in a very strong position to complete the Victoria acquisition and rapidly initiate on-ground activities to advance the project, and seek further acquisitions at this opportune time.”

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