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

Up to 100% participation interest disposal in Tau-Ketmen LLP – the owner of «Exploration of gold at Predgorny Ketmen deposit in Almaty region of the Republic of Kazakhstan» subsoil use contract

Object of sale: up to 100% share of interest in Tau Ketmen LLP.

Type of subsoil activity: exploration

Type of mineral: Alluvial gold

Contract №4134-ТПИ on exploration of gold at Predgorny Ketmen deposit in Almaty region of the Republic of Kazakhstan dated July 31, 2012 (hereinafter – the Contract).

Contract period: 4 years.

Holder of mineral rights: Tau Ketmen LLP.

Tau Ketmen LLP profile

Tau Ketmen LLP was registered by Ministry of Justice of the Republic of Kazakhstan on December 29, 2012 at the address: 8 D.Konayev Street, Block B, Yessil district, Astana city, 010000, the Republic of Kazakhstan.

Tau Ketmen LLP is 100% subsidiary owned by Tau-Ken Samruk JSC.

Accounting balance sheet of Tau Ketmen LLP 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

31,319

39,210

Current trade and other receivables

 

133

Other current assets

195

186

Total current assets

31,514

39,529

II. Long-term assets

 

 

Exploration and evaluation assets

256,201

141,377

Other long-term assets

8,700

7,233

Total long-term assets

264,900

148,610

Total Assets

296,414

188,139

III. Current liabilities

 

 

Current reserves

4,402

3,881

Employee benefits

38

 

Total current liabilities

4,439

3,881

IV. Long-term obligations

V. Equity

 

 

Authorized (share) capital

318,832

199,453

Retained profit (outstanding loss)

(26,857)

(15,195)

Total Capital

291,975

184,258

Total Liabilities and Equity

296,414

188,139

*Unaudited financial statement.

Geological profile on the subsoil object.

Working area is located in the southern slope of Ketmen mountain range. Administratively the deposit embraces Uigur and Raiymbek districts of Almaty region.

In 30 km to the east from the area of exploration the border of Chinese Peoples Republic. Administrative center of Raiymbek district is in 110 km to the south-west from the deposit.

Subject of exploration – alluvial gold – is located in Cenozoic group, among Neogene and quaternary deposits represented by cobble boulders with sandy-loam and gravel filling.

Basically, sources of alluvial gold deposits of Predgorny Ketmen relate to the South Ketmen ore cluster of East Ketmen ore deposit of Ketmen minerogenic subzone.

The ore deposit refers to volcanic edifice of Early Carboniferous. Central part of the ore cluster is built by Arshaly extrusive dome composed of fluidal massive lavas and lava breccia of trachidacite composition subjected to heavy metasomatism that forms silification and pyritization zones bearing gold mineralization. Silification zones comprises native gold and structurally located above pyritization zones, which include finely dispersed and colloidal gold.

Major gold-sulfide quartz veined objects deposited in upper hydrothermal-metasomatic column and bearing native free gold containing 1.0-74.0 g/t are eroded, whilst free gold is transformed into placer gold. Pyritization zones with gold content 0.1-0.3 g/t are prevailing in recent erosional truncation of South Ketmen ore cluster.

Contract area is located within Ketmen river-valley (extended to 4.0 km) favorable for alluvial gold formation and Shalkudysu (extended to 4.0 km) characterized by grade flattering and developed by different age terrace complex.

Gold mineralization of the area is associated with the alluvial gold of the following types:

  • terraciform – on Ketmen river I and II left terrace above the flood-plain;
  • terraciform – on Ketmen river III right and left terrace above the flood-plain;
  • large-volume with fine-dispersed gold in Shalkudysu river-valley.

 

Tau-Ketmen deposit

Inferred resources of alluvial gold within the boundaries Contract area were estimated at 7,089.83 kg, including: P1 – 2,559.38 kg in Ketmen river-valley and Р2 – 4,530.45 kg in Shalkudysu.

Currently, laboratory tests are carried out and results of the desk study will be held for calculation of reserves of C1-C2.

 

Current situation on Tau-Ketmen subsoil contract

From 2012 up to the present time, geological exploration works are carried out as follows:

  • topographic-geodesic surveying;
  • mine footage and testing of mines and wells – 3,010 l.m;
  • samplings from wells and bore holes – 6,020 samples;
  • estimation of gravitation gold content – 252 samples;
  • estimation of fine-dispersed gold content with the use of hydro-metallurgical method – 3560 samples;
  • results analyzed and preliminary map of gold-bearing area within Ketmen river-valley drawn up at the scale 1:5000;
  • technological survey of large-volume sample KT-1 is in progress by KRITS – NTK LLC (Stepnogorsk, Director – V.V. Peregudov)

Disposal process

Sale of participation interest in Tau Ketmen LLP 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 potential buyer with the anticipated share of participation acquisition shown and enclosed details.
  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 permit on 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, 13th floor of Emerald Square administrative building, Block B

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