News

July 29, 2010

Kryso Secures Heavyweight Chinese Backing For The Development Of The Three Million Ounce Pakrut Gold Deposit In Tajikistan

By Alastair Ford

In some ways it’s the junior miner’s 21st century dream: a big Chinese sugar daddy comes on board, solving all financing and development worries at a stroke. Life’s not always so simple, as European Nickel, and one or two others that ended up mired in Chinese bureaucracy can attest, but in the case of Kryso Resources, the recent intervention of the China Nonferrous International Metals looks like a godsend. With Western banks still in ultra-cautious recovery mode following the global financial crisis, the likelihood of Kryso getting Pakrut, its lead project Tajikistan, funded by what used to be the convention debt:equity method had always looked open to question. No question about the quality of Pakrut. The three million ounces are well and truly locked away, and recent drill interceptions of 25.5 metres at 7.5 grammes per tonne, 42.4 metres at 5.4 grammes per tonne, and 12 metres at 6.4 grammes per tonne from what’s known as Ore Zone 1 give a clear indication of the type of orebody that we’re dealing with. It’s good.

So it’s little wonder that certain interested parties have tried to muscle in. But all that, says Kryso’s Craig Brown, is behind the company now; and especially now that the China Nonferrous is on board. Under the terms of the deal, Kryso will retain four board members, while the Chinese will get the right to nominate another two, a non-executive chairman, and another non-executive. More importantly from an investment point of view, China Nonferrous will come in for an immediate £10.99 million...