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

Up to 100% participation interest disposal in Shokpar-Gagarinskoye LLC – the owner of “Exploration of gold bearing ores at Gagarinskoye deposit in Zhambyl region of the Republic of Kazakhstan” and “Exploration of gold at Shokpar deposit in Zhambyl region of the Republic of Kazakhstan” subsoil use contracts

Object of sale: up to 100% share of interest in Shokpar-Gagarinskoye LLC.

Type of subsoil activity: exploration

Type of commercial minerals: gold, silver

Gagarinskoye: Contract № 4323-ТПИ on exploration of gold at Gagarinskoye deposit in Zhambyl region of the Republic of Kazakhstan dated December 27, 2013 (hereinafter referred to as Gagarinskoye Contract). Contract period is 4 years.

Shokpar: Contract № 4333-ТПИ on exploration of gold bearing ores at Shokpar deposit in Zhambyl region of the Republic of Kazakhstan dated January14, 2014 (hereinafter referred to as Shokpar Contract).  Contract period is 4 years.

Holder of mineral rights: Shokpar-Gagarinskoye LLC

Shokpar-Gagarinskoye LLC profile.

Shokpar-Gagarinskoye LLC was registered by Ministry of Justice of the Republic of Kazakhstan on March 28, 2014 at the address: office 1337в, Block “B” of Building 8, D.Konayev Street, Yessil district, Astana city, 010000, the Republic of Kazakhstan.

Shokpar-Gagarinskoye LLC is a 100% owned by Tau-Ken Samruk JSC.   

Accounting balance sheet of Shokpar-Gagarinskoye LLC as of December 31, 2015.

                                                                                                                                                            ths. tenge

ASSETS

Line code

As of the end of the reporting period

As of the beginning of the reporting period

1

2

3

4

I. Current assets

 

 

 

Cash and cash equivalents

010

57

174

Other current assets

019

2 180

186

Total current assets (sum of lines 010 to 019)

100

2 236

359

Assets (or disposal groups) available for sale

101

–

–

II. Long-term assets

 

 

 

Financial assets available for sale

110

–

–

Exploration and evaluation assets

120

667 972

230 008

Other long-term assets

123

7 232

1 947

Total long-term assets (sum of lines 110 to 123)

200

675 203

231 955

BALANCE (line 100 + line 101 + line 200)

 

677 440

232 314

LIABILITIES AND CAPITAL

Line code

As of the end of the reporting period

As of the beginning of the reporting period

1

2

3

4

III. Short–term liabilities

 

 

 

Short-term  trade and other payables

213

12 833

207 110

Short-term reserves

214

293

293

Current tax liabilities on income tax

215

–

–

Employee benefits

216

23

–

Other short-term liabilities

217

–

–

Total short-term liabilities (sum of lines 210 to 217)

300

13 149

207 403

Liabilities of disposal groups available for sale

301

–

–

IV. Long-term liabilities

 

 

 

Total long-term liabilities (sum of lines 310 to 316)

400

–

–

V. Capital

 

 

 

Authorized (share) capital

410

725 743

26 829

Retained net surplus (outstanding loss)

414

(61 453)

142

Total capital attributable to the owners of the parent company (sum of lines 410 to 414)

420

664 291

26 971

Non-controlling interest

421

–

–

Total capital (line 420 +/- line 421)

500

664 291

26 971

BALANCE (line 300 + line 301 + line 400 + line 500)

 

677 440

234 373

*Not audited financial statement.

 

Geological profile on the subsoil objects.

 

  1. Gagarinskoye deposit.

Gagarinskoye deposit is located in Korday province of Zhambyl region, 200 km to the west from Almaty and 60 km from Otar railway station, at the site of geological allotment with the area 5 (five) sq.m.

The distance from the site to the highway Almaty-Bishkek by paved road is 17 km; whereas it is 8 km by field road. The proximate railway station Birlik is 35 km from the deposit.

Considerable part of the deposite is composed of Aktass intrusive granitoids of Kurday-Shatyrkul igneous complex that, according to the ancestors, break through the tufaceous formations of andesitic composition of rgaitinskaya suite developed into amphibolites.    

Gagarinskoye deposit resources

According to CCR (Central Commission for Reserves) Protocol №16, 1992, and SRC RK (State Reserve Committee of the Republic of Kazakhstan) orebodies №1,2,3 have following C2 category resources:

ore                                     1,659.6 th.t

gold                                   9,430.3 kg

silver                                 85.4 t

gold content                      5.7 g/t

silver content                    51.5 g/t.

In terms of geological characteristics of ore bodies, the deposit belongs to the third group of complexity for geologic exploration.  

Current situation on Gagarinskoye subsoil contract

From 2014 up to the present time exploration works are carried out at Gagarinskoye deposit estimation based on Contract № 4323-ТПИ. Purpose of works to increase reliability of resources previously calculations of reserves and update information about ores processing characteristics, hydrogeological, mining and ecological conditions of the deposit for geological-economic estimation as well as to increment resources of the deposit.

 Scope of performed works for the period from 2014 to 2015 is as follows:

-areal geophysical exploration of all the contract territory (range of activities comprising electromagnetics);

– prospecting traverse is 50 l.km;

– topographical survey of the part of the license territory(М 1:2000);

– mine footage (drilling progress and wells logging) is 4,056.6 m3;

– test drilling is 9600 l.m (32 wells);

– geophysical survey of all the drilled wells;

-testing and logging of all the open-pit minings;

-laboratory-analytical sampling (ICP-AES analysis and fire assay test of gold grade).

Further test drilling as well as logging of ore concentration characteristics and hydrogeology survey is planned for 2016.

 

  1. Shokpar deposit

Shokpar deposit, located in Kendyktas mountains on the territory of Korday province of Zhambyl region, has favourable geographic environment and economic factors.

The area of deposit geological allotment is 4.2 km2.

The distance from the deposit to Almaty is 227 km, wherein Almaty-Bishkek highway is 210 km, paved road to Nogaibai village is 12 km, off-road is 5 km. Almaty railroad passes by to the north from the deposit, the distance to the proximate Otar railway station is 50 km.

The deposit should be classified as a hydrothermal moderate-sulfide veined quartz type and mineralized zone of fragmentation in carbonaceous-argillaceous and carbonaceous-siliceous deposits of Lower-Middle-Ordovician Shcherbak formation. Ore mineralization is located in the south exo-contact of Late-Ordovician granodiorite solid.

The internal structure of ore bodies is determined by the combination of mineralized zones of brecciation, schistosity, quartz veins and veinlets. Most of the gold is associated with quartz – polymetallic veins and veinlets, the length of individual veins is from 1-1.5 to 50 m, capacity ranges from 0.1 to 2.5 m.

Commercial ores are concentrated in seven zones.

 

Resources in these blocks are estimated by geological block method with projection of ore bodies on vertical plane. C2 category resources are estimated to a depth of 280 m, P1 inferred resources – up to 450 m. Small blocks of ore bodies 12, 9 and 6 are explored by stonedrifts (40-60 m from the surface), can be classified as C1 resources.

Deposit resources are estimated with due regard to the requirements approved by USSR MG CCR (1989):

– cut-off grade of gold grade in the sample is 1.0 g/t;

– gold content in mining outputs for delineation of strike and dip accounted blocks – 3.0 g/t;

– cut-off grade of gold grade in the accounted resources block is 4.0 g/t;

– ore body net thickness is 1.0 m, if thickness is less than that and gold content is high, the relevant GT shall be used;

– thickness of ore-free layers comprised into ore body payable boundaries is 3.0.

Shokpar deposit resources

Estimated but not ( to a depth of 280 m) ultimate resources of seven ore zones by С1+С2 category were not appraised by SRC RK, are as follows:

ore                                     2,105.6 th.t

gold                                   15,151.8 kg

silver                                 89.7 t

gold grade                         7.2 g/t

silver grade                       42.6 g/t

In terms of geological characteristics of ore bodies, the deposit belongs to the third group of complexity for geological exploration.

Inferred gold resources from 280 to 450 m are 15,000 kg.

Current situation on Shokpar subsoil contract

From 2014 up to the present time exploration works are carried out at Gagarinskoye deposit estimation based on Contract № 4333-ТПИ. Purpose of works to increase reliability of resources previously calculations of reserves and update information about ores processing characteristics, hydrogeological, mining and ecological conditions of the deposit for geological-economic estimation as well as to increment resources of the deposit.

Scope of performed works for the period from 2014 to 2015 is as follows:

-areal geophysical exploration of all the contract territory (range of activities comprising electromagnetics);

– prospecting traverse is 30 l.km;

– topographical survey of all the license territory (М 1:2000);

– mine footage (drilling progress and wells logging) is 152 m3;

– test drilling is 7331.4 l.m (45 wells);

– geophysical survey of all the drilled wells;

-testing and logging of all the open-pit minings;

-laboratory-analytical sampling (ICP-AES analysis and fire assay test of gold grade).

Further test drilling as well as logging of ore concentration characteristics and hydrogeology survey is planned for 2016.

Disposal process

Sale of participation interest in Shokpar-Gagarinskoye LLC 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 (the anticipated share of participation acquisition shown 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: https://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