Tau-Ken Samruk JSC is announcing about opportunity of disposal of up to 100% participation interest in Tau-Ken Progress LLC.

Up to 100% share of participation interest disposal in Tau-Ken Progress LLC – the owner of “Exploration of gold at Progress deposit in Karaganda region of the Republic of Kazakhstan” subsoil use contract

Object of sale: up to 100% share of interest in Tau-Ken Progress LLC.

Type of subsoil activity: exploration

Type of commercial minerals: gold, silver

Contract № 4504-ТПИ on exploration of gold at Progress in Karaganda region of the Republic of Kazakhstan dated December 23, 2014 (hereinafter – the Contract).

Period of the contract: 5 years.

Contract holder: Tau-Ken Progress LLC.

Tau-Ken Progress LLC profile

Tau-Ken Progress LLC was registered by Ministry of Justice of the Republic of Kazakhstan on April 08, 2014 at the address: office 1337b, Block “B” of Building 8, D.Konayev Street, Yessil district, Astana city, 010000, the Republic of Kazakhstan

Tau-Ken Progress LLC is a 100% subsidiary owned by Tau-Ken Samruk JSC.  

Accounting balance sheet of Tau-Ken Progress LLC as of December 31, 2015.

                                                                                                                                                                        ths. tenge

Balance

As of the end of the reporting period

As of the beginning of the reporting period

I. Current assets

 

 

Cash and cash equivalents

22

183

Other current assets

137

 

Total current assets

159

183

II. Long-term assets

 

 

Exploration and evaluation assets

86 936

28

Other long-term assets

712

Total long-term assets

87 648

 

Total Assets

87 807

211

III. Short-term Liabilities

 

 

Employee benefits

28

28

Total short-term liabilities

28

28

IV. Long-term liabilities

V. Equity

 

 

Authorized (share) capital

88 089

185

Retained profit (outstanding loss)

(310)

(2)

Total Capital

87 779

183

Total Liabilities and Equity

87 807

211

*Not audited financial statement.

 

Geological profile on the subsoil object.

Progress gold ore deposit is located in Karkaralinsk province of Karaganda region, 130 km to the South-East of Karagailinsk field and 90 km from Kentobe railway station.

On the deposit there are two spatially separated between themselves (1 km) sites of mineralized zones: Northern and Southern ones.

Within the boundaries of the Northern site, there are eight sub-parallel zones of veinlet silicification and quartz veins with the margin of quartz-sericite-pyrite metasomatites, each zone surface is spread from 250 to 750 m. Trend of ore zones is North-West (310-330°), dip direction is North-East, steep dip (75-95°). Total length of contiguous zones of silicification in the Northern area is 750 m, its width is 150-200 m.

In the Southern area, there are 14 contiguous zones of silicification and quartz veins spread from 160 to 1200 m. Trend of ore zones is North-East (30-50°), dip direction is South-East, steep-dip; thickness is ranging from 1.0 to 6.0 m. Total length of Southern zone is 1200 m, its width is 500 m.

Gold-silver mineralization at the Deposit is confined to zones of veinlet-vein and stockwork silicification and accompanying quartz-sericite-pyrite metasomatites. Ore bodies within these zones are not contrasting, do not have clear geological boundaries and can be distinguished only by sampling. They present lenticular and vein-like, sometimes pillar-like deposits.

The mineral composition of ores: quartz, sericite, feldspars, pyrite, galena, sphalerite, and rarely chalcopyrite. Ore minerals form rare dispersed impregnation of very small crystals and grains or veiny segregations.

Gold in the ore is mainly free, associated with quartz, forming separate scattered grains of isometric, angular, curved shapes. The size of gold particles is 0.001-0.025 mm, sometimes up to 0.04 mm. the Distribution of gold in the ore bodies is uneven and variable. The Deposit is classified as the 3rd group complexity of the geological structure.

The deposit comprises 6 ore bodies in the Northern (C1 category) and Southern (C2 category) sites.

Deposit resources

Deposit resources are calculated and approved by the Protocol of Tcentrkaznedra TS (Protocol № 702-з dd March 31, 1998) as of January 1, 1998: category С12: ore is 282.11 ths. tones, gold is 1538.17 kg, (average grade is 5.45 g/t), and silver is 586.42 kg (average grade is 3 g /t).

Deposit inferred resources estimation is 8.5 t of gold (average grade is 2.9 g/t).

Current situation regarding subsoil contract

The scope of geological exploration works are performed from the day the Contract came into effect is as follows:

Drilling of wells core with the diameter HQ (96 mm) – 3,077 l.m;

Geophysical wells survey – 2,770 l.m;

Geological logging of drill-hole cores – 3,077 l.m.;

Drill-hole cores sampling, laboratory-analytical works.

Disposal process

Sale of participation interest in Tau-Ken Process shall be performed in accordance with the legislation of the republic of Kazakhstan and Internal Regulations of Tau-Ken Samruk JSC.

 

Disposal process consists of 2 stages:

  1. 1. Preliminary stage:
  2. Letter of interest from the potential buyer with the anticipated share of participation acquisition shown named and enclosed details of potential buyer.
  3. Providing non-confidential information to the potential buyer on request.
  4. Signing Confidentiality Agreement, should confidential information be required for further consideration.
  5. If necessary Tau-Ken Samruk JSC shall address a request to subsoil authorized body of the Republic of Kazakhstan for permitting to disclose confidential information related to the Contract.
  6. Final qualification stage:
  7. Notifying interested parties and publication of request for quotations. The request shall comprise minimum requirements to the transaction and deadline for quotations submission.
  8. Consideration of quotations by an authorized body of Tau-Ken Samruk JSC.
  9. Signing of transaction documents with the qualified party.

 

Principal statutory acts of the Republic of Kazakhstan can be found at: http://www.tks.kz/page/zakonodatelstvo  (www.tks.kz/Investors/Legislation)

Tau-Ken Samruk JSC mail address:

8 D.Kunayev Street, Izumrudnyi kvartal administrative building

Block “B”, 13th floor

Yessil district, Astana, 010000

The Republic of Kazakhstan

Registry office:

Tel.: +7 (7172) 55-95-72

Fax: +7 (7172) 55-27-80

e-mail: info@tks.kz

Contacts for inquiry:

Alibek Arshabekov

Managing Director on Investments

+ 7 (7172) 55-95-17

a.arshabekov@tks.kz

 

Altay Abdikerimiv

Senior manager of the Corporate Finance Department

+7 (7172) 55-95-20

a.abdikerimov@tks.kz