OXS Oxus Gold

TIDMOXS

RNS Number : 9602J

Oxus Gold PLC

23 December 2015

23 December 2015

Oxus Gold plc

Statement re. Suspension and Update on Arbitration Proceedings

Oxus Gold plc ("Oxus Gold" or the "Company") announces that trading in the Company's ordinary shares on the AIM market of the London Stock Exchange will be suspended with effect from 7.30 a.m. today, pending clarification of the Company's future financial position following a decision by the arbitral tribunal ("Arbitral Tribunal" or "Tribunal") in respect of the Company's claims against the Government of Uzbekistan.

Update on Arbitration Proceedings

Oxus Gold refers to the UNCITRAL international arbitration proceedings commenced by the Company against the Government of Uzbekistan on 31 August 2011, in relation to the expropriation of the Company's investments in Amantaytau Goldfields Joint Venture ("AGF") and the Khandiza deposit, as described in RNS Number 3270N dated 31 August 2011.

On 21 December 2015, the Arbitral Tribunal chaired by Professor Pierre Tercier, Honorable Marc Lalonde and Professor Brigitte Stern has rendered its final award.

The Company's claims with regard to the Company's investments in the Khandiza deposit have been dismissed entirely. The claims with regard to the Company's investments in AGF have been dismissed, save for a finding of a breach of "fair and equitable treatment" (FET) standard under the UK-Uzbekistan Bilateral Investment Treaty as regards Uzbekistan's modifications in 2006 and 2009 of the taxation regime applicable to AGF. The Tribunal awarded the Company USD 10,299,572 in damages with interest of LIBOR + 2% to be compounded annually as of the corresponding years 2004 to 2010 (the "Final Award").

Honorable Marc Lalonde dissented with majority as far as responsibility was concerned for the Company's inability to complete the outstanding portion of AGF Phase 1 and to undertake AGF Phase 2 works, stating that Uzbekistan should have been declared 50 percent liable therefor.

Uzbekistan's counter-claims have been dismissed in their entirety for lack of jurisdiction. The Tribunal ordered each party to bear its own costs, and to each pay half of the Tribunal's fees and expenses.

The Final Award obtained by the Company has to be considered together with the outstanding claims of the third-party litigation funder on this amount and the Company's other outstanding liabilities.

The Company is in the process of analysing the Arbitral Tribunal's decision with its legal advisers, as the only possibility to challenge the Final Award, in part or in its entirety, is through the French courts as Paris is the seat of the arbitration. The Company may need to engage in discussions with its litigation funder and other creditors prior to making a decision.

As a result of the decision of the Tribunal, a material uncertainty exists in relation to the Company's ability to continue as a going concern and, therefore, to realise its assets and discharge its liabilities in the normal course of business. The Company will make further announcements as soon as possible and trading in its ordinary shares is expected to be suspended until clarification of the matters referred to above.

Mr. Said Ashurov, the former Chief Metallurgist of AGF, remains in prison in Uzbekistan on what the Company considers to be an unjust and improper conviction for seeking to remove classified information from the country. This matter did not fall within the scope of the arbitration.

Richard Shead, Chairman of the Company said: "I am devastated by the decision of the arbitration award in relation to Oxus Gold and will continue to work with the Company's lawyers to extract as much value as possible for shareholders of the Company."

Contact details:

 
 Oxus Gold plc                   Tel: +44 (0) 20 7907 
  Richard Shead                   2000 
 SP Angel Corporate Finance      Tel: +44 (0) 20 3470 
  LLP                             0470 
  Ewan Leggat / Laura Harrison 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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December 23, 2015 02:00 ET (07:00 GMT)

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