LEG announced that it has acquired a 5.5% stake and an option over an additional 4.45% stake in Manas Resources LLP ("Gold Company"), the holder of a licence to explore and mine for gold in Sultan Sary, Narynskaya Oblast, Kyrgyzstan, in exchange for its interests in Manas Minerals LLP, which has coal interests. The option has a nominal exercise price and vests on Gold Company achieving certain milestones.
About the Licence
The area is located in the gold-rich Tien-Shan region of Kyrgyzstan and covers approximately 66 sq km. The southwest corner of the area covered by the Licence, an area of approxiatemly 2 sq km, borders on its southern side the Choloktor gold area which under the Soviet Classification system contains a P3 resource of 15 tonnes of gold. Choloktor in turn is bordered by Buchuk, an area which under the Soviet Classification system contains a C1 resource of 20 tonnes of gold and a P3 resource of 41 tonnes of gold. This area in turn borders the Altyntor area which under the Soviet Classification system contain a C1 and C2 resource of 7 tonnes of gold. The structures in the southwest corner of the Licence are similar to those in the gold contaning areas of Choloktor, Buchuk and Altyntor, and it is believed that the same vein runs through all four areas.
For conversion purposes, 1 tonne = 35,274 oz
The swap in asset is timely as coal price has plummeted while gold price is on an upward momentum. Over the long term this new asset could be worth a lot more to LEG.
My disclosure: I own shares of LEG.
The area is located in the gold-rich Tien-Shan region of Kyrgyzstan and covers approximately 66 sq km. The southwest corner of the area covered by the Licence, an area of approxiatemly 2 sq km, borders on its southern side the Choloktor gold area which under the Soviet Classification system contains a P3 resource of 15 tonnes of gold. Choloktor in turn is bordered by Buchuk, an area which under the Soviet Classification system contains a C1 resource of 20 tonnes of gold and a P3 resource of 41 tonnes of gold. This area in turn borders the Altyntor area which under the Soviet Classification system contain a C1 and C2 resource of 7 tonnes of gold. The structures in the southwest corner of the Licence are similar to those in the gold contaning areas of Choloktor, Buchuk and Altyntor, and it is believed that the same vein runs through all four areas.
For conversion purposes, 1 tonne = 35,274 oz
The swap in asset is timely as coal price has plummeted while gold price is on an upward momentum. Over the long term this new asset could be worth a lot more to LEG.
My disclosure: I own shares of LEG.
No comments:
Post a Comment