UPDATE 1-Oxus Gold to get $185 mln from Chinese investors

Thu Jan 7, 2010 7:19pm IST

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* To raise funds via share sale, warrants, loan notes

* To sell 573 mln new shrs, or 59.7 pct stake, at 6p/shr

* Sale price at 32 pct discount to Wednesday's close

* To use funds to develop AGF JV in Uzbekistan.

* Shares up 5.1 pct (Adds details)

Jan 7 (Reuters) - Central Asia-focused gold miner Oxus Gold Plc (OXS.L) said it signed a $185 million financing deal with a group of Chinese investors, which includes the sale of a majority stake in the company, and use the funds to develop its Amantaytau Goldfields joint venture in Uzbekistan.

Shares of Oxus Gold were up 5.1 percent at 9.3 pence at 1346 GMT on the London Stock Exchange.

The company said in a statement it expected the proceeds to enable its 50 percent-owned Amantaytau Goldfields to target first production at the underground sulphide project for the middle of 2011 and thereafter expand annual production to about 300,000 ounces.

Oxus Gold would raise $85 million through issue of shares and convertible loan notes to the Chinese investors, including China's third-largest zinc producer Baiyin Nonferrous Group Co Ltd and state-owned CITIC.

The investors would buy 573 million Oxus Gold shares at 6 pence each -- a 32 percent discount to their Wednesday's close -- representing a 59.7 percent stake in the company, it said.

The company said it would additionally grant warrants for about $20 million in return for an undertaking to arrange a further minimum of $80 million in project finance.

Oxus Gold said it may also raise an additional 4 million pounds ($6.37 million) through a sale of shares to institutional investors. ($1=.6282 Pound) (Reporting by Shivani Singh in Bangalore; Editing by Unnikrishnan Nair)

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