Thursday, 14th July 2005 (2929 views)

Oxus Gold has revealed plans to acquire gold assets in Romania and the Ukraine

The UK gold mining group, with interests in Central Asia, has agreed certain principal terms with Eurogold Limited, an Australian company.

The deal will increase Oxus's gold mining operations in the former Soviet Bloc countries.

Under the terms of the proposals Oxus will acquire all of the issued capital of Eurogold (Bermuda) Limited, a subsidiary of Eurogold, which controls its assets in the Ukraine.

It will also takeover Explorer SA, an exploration subsidiary in Romania, which holds largely exploration assets in the country.

Further, Oxus will control an interest in Transgold SA, a joint venture company in which Eurogold holds a 50 per cent interest.

Transgold operates a carbon-in-leach plant (CIL) at Baia Mare in southern Romania for the treatment of gold tailings.

Bill Trew, chief executive of Oxus Gold, said: "We are very pleased that we have been able to reach agreement with Eurogold to purchase its assets which we believe will provide substantial benefits to our shareholders and is a further significant step in the development of Oxus as a major low-cost gold producer, focussed on the southern region of the former Soviet Bloc."

 

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