Kryso to announce £130m deal with Chinese group
KRYSO RESOURCES, the Aim-listed gold explorer, is this morning expected to announce a tie-up with China Nonferrous Metals International Mining (CNMIM) worth £130m.
CNMIM will take a 29.9 per cent stake in Kryso for £10.9m through a conditional placing to help the company develop its Pakrut gold project in Tajikistan. CNMIM will give an additional undertaking to raise £120m for equipment and working capital to help Kryso extract the precious metal. There are an estimated 2.8m ounces of gold at the Pakrut site worth around $4bn (£2.6bn).
Kryso has been in talks with CNMIM, which is part-owned by the Chinese government, for three months. Yesterday representatives from the company met the Chinese and Tajik ambassadors at the offices of law firm Speechly Bircham to seal the deal. It is still dependent on due diligence and ratification by Kyrso’s shareholders at an EGM.