An initial coal testing program from Celsius Coal’s 2013 drilling campaign at the Uzgen Basin Coking Coal Project in Kyrgyz Republic has identified the need for further CSR testing. The company is reviewing core from the 2013 program to identify the most suitable samples for the additional tests. It is possible that further samples may need to be collected to allow this to be completed.

An initial coal testing program from Celsius Coal’s 2013 drilling campaign at the Uzgen Basin Coking Coal Project in Kyrgyz Republic has identified the need for further CSR testing. The company is reviewing core from the 2013 program to identify the most suitable samples for the additional tests. It is possible that further samples may need to be collected to allow this to be completed.

Preliminary CSR results are below the minimum level specified in the MoU signed earlier this year with two Chinese companies. As a result Celsius will spend time focusing on any implications in establishing the market for, or impacting the value of, its coal.

Celsius is also working on potential open pit designs. It is expected that this work and additional review of auger mining options will continue until the end of the year.

The company has also decided not to proceed with further work at its non-core Sary Mogol thermal coal property in southern Kyrgyz Republic. It is exploring opportunities for the sale of this asset.

Kazax private placement
Kazax Minerals has announced a non-brokered private placement which aims to raise US$20 million. The company intends to issue the securities to two of its directors, Riad Al Sadek and Moshtagh Moshtaghi, to amend the terms of the US$20 million loans granted by them to the company in September.

Kazax intends to use the funds to advance the Lomonosovskoye iron project in Kostanay Oblast, Kazakhstan, including completion of a bankable feasibility study.

The loans were announced by Kazax at the same time as it entered a formal amending agreement with Safin Element GmbH, the vendor of Kazac’s 74.99% interest in Lomonosovskoye LLP, which holds unrestricted exploration and production rights to the iron project.

Dalabai debt funds update
Central Asia Resources advises that Halyk has confirmed that its credit committee was expected to consider on October 20 the approval of tranche 2 funds of US$1.6 million as well as the redraw facility associated with the working capital component of tranche 1 funds. These funding arrangements apply to the company’s Dalabai Gold project in Kazakhstan.

As at the end of September the company had repaid US$250,000 of tranche 1 and expected those funds to be redrawn under the revolving loan agreement.
On September 23 Central Asia advised that while mining at Dalabai had stockpiled 15,000 tonnes, the mining contractor had been stood down until the company received further funds. It said leaching activities were continuing with gold being recovered onto resin.

It also said that discussions with another potential financier who had expressed an interest in the future funding of a possible Altyn Tas project development, and refinancing some existing debt, were under way. A site visit with a European bank had been completed and would be followed by further analysis and discussions.

Managing director and CEO Peter Thompson said the capital raising was progressing well with further funds committed. This had been extended to allow an opportunity for further potential investment from interested parties.

Financing facility with Azarga
Powertech Uranium Corp, pending a name change to Azarga Uranium Corp, announces that Azarga Resources has agreed to make available an additional loan facility in the amount of US$650,000 and that it has entered into an amendment to the Share Purchase Agreement dated February 25, 2014 with Azarga, whereby the parties agreed to amend the original agreement by extending the closing date to October 31, 2014.

The merger between Powertech and Azarga Resources has been approved and the combined company has done a Can$5 million capital raise to fund post-merger activities. Azarga has 80% ownership of the largest know uranium deposit in the Kyrgyz Republic.

Alhambra operations on hold
Due to ongoing financial constraints for Alhambra Resources, mining operations at the Uzboy project in Kazakhstan remain suspended. In its June quarter results the company said no cash flow was generated as no fresh ore was stacked on the heaps and no gold was produced or sold.

No field work was carried out in the quarter due to financial constraints while the company raised Can$250,000 and continues pursuing various financing alternatives. Should a financing be successfully concluded, a portion of the proceeds will go towards resuming the mining of ore. As of June 30, 2014, the estimated recoverable gold classified as WIP was 30,000 ounces.

Govt seeks to block Stans judgement
The Kyrgyz Republic has filed a motion to Moscow Arbitration Court to block the recent judgement in favour of Stans Energy Corp. The Kyrgyz Republic filed a motion to the Court to have the Judgement of the Arbitration Court at the Moscow Chamber of Commerce and Industry (MCCI) in the matter dated June 30, 2014 set aside.
The Kyrgyz Republic filed the motion on adoption of interim measures in the form of:

  1. Suspension of the recovery of Judgement of the Arbitration
  2. Prohibit the Claimant (Stans) and other third parties, wherever they are, to take any action on the territory of the Russian Federation or any foreign State:
  • On recognition and enforcement of the Judgement;
  • On recovery of any sums under this Judgement;
  • On arrest of any property of the Kyrgyz Republic;
  • On adoption of any other interim measures in connection with the Judgment.

The Court ruled to refuse the Kyrgyz Republic motion.

Previously on September 23, 2014, the Economic Court of the CIS issued a decision No 01-1/1-14 ‘On Interpretation of Article 11 of the Moscow Convention for the Protection of Investor’s Rights dated March 28, 1997’. In essence the advisory opinion upholds the decision of the MCCI with regards to jurisdiction in the international arbitration between Stans and the Kyrgyz Republic.

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