Alhambra Resources has been given permission by the Kazakhstan Ministry of Industry and New Technology (MINT) to reduce the floor price for a potential future equity financing. The government approval means the floor price of US$0.60 per common share can drop to US$0.20 per common share, and is now extended until June 25.

In September last year the company announced it had executed a non-binding term sheet which met the terms of the original MINT approval for a US$0.60 per share floor price. Alhambra is completing the due diligence process related to that financing and is optimistic of closing deal soon.

The company’s chief executive officer John J Komarnicki says, “We are very pleased to have received approval to reduce the floor price in such an expeditious time period given that our request was made to MINT in the fourth quarter of 2012. Upon successful completion of a financing we anticipate being able to proceed with the acceleration of exploration and production development of Alhambra’s gold mineral licence.”

The Canadian-based gold explorer holds exploration rights to the 2.4 million acre Uzboy project in the northern Kazakhstan metallogenic province which hosts several world-class deposits. More than 100 targets, including three advanced exploration areas, are contained within the Uzboy project.

In November last year, Alhambra intersected high-grade gold mineralization in eight drill holes at the Shirotnaia deposit. Highlights of these drill results included 1.47 grams/tonne gold over 27.4 metres, 1.73 grams/tonne over 17.5 metres and 1.56 grams/tonne gold over 18.2 metres.

John J Komarnicki says the Shirotnaia deposit is likely to be a significant gold system on a standalone basis, and it is just one of a number of targets Alhambra will advance over the next 12 months.