Kryso is an emerging mineral exploration company that is principally focussed on exploring the gold and other precious metals deposits previously discovered in Central Asia during the Soviet Union era and then, where appropriate, bringing them into production.
Kryso, which has its head office in London, is a public company that was admitted to the AIM in December 2004 in order to continue funding the development of the Pakrut Gold Deposit, further explore the Pakrut Licence Area and to obtain and acquire other gold and base metal deposits in Tajikistan and elsewhere in Central Asia. The Group's executive directors and senior management are based in Dushanbe.

The Company's executive directors have a proven track record of operating in Tajikistan and they believe that Kryso Resources is the first foreign company to obtain a 100% interest in a mining and exploration project in the country.

From 1 April 2004, LLC Pakrut, a wholly owned subsidiary of the Company, was granted a licence and geological lease to explore and exploit the Pakrut Licence Area which comprises the Pakrut gold deposit and the surrounding 6,300 hectare exploration area located in the metalliferous southern Tien-Shan Fold Belt. This belt is reputed to have the second largest known gold resource after the Witwatersrand in South Africa.

The Group intends to conduct a feasibility study to assess whether the Pakrut gold deposit can be developed into a producing mine and also intends to explore the already identified mineral deposits and areas of mineralization in the Pakrut Licence Area.

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Rising bit by bit....EK says a possible takeover target at 21p or so.....

Am looking to ADD; but considering my chart illustrates a technical buy originally at 10.25 in June which is underlined at 14p in Aug presumely when citizen Roly bought , i am more than a little reluctant whether to buy @ the current offer of a tad shy of 17p . lncidentally Simon C. who happens to be a neighnor of mine in London, cajoled his father in law - a crown court recorder- to buy and hold a shedload bought at approx 13/14p cant be seen as anything but a positive sign / ....may wait for a bit of profit taking and try and get in at around 15p ....but with gold breaking resistance of 1275 recently i could be waiting a long time. ......

TFC

Care to share your thoughts as to why this was a technical buy in June and why underlined at 14p in August? As a keen chartist I'm always interested to understand that which drives other's analysis.

after talking to a friend who holds a principal position in KYS with clients holding 500k+ in warrants issued at a meagre 8p not so lomg ago , i have totally revised my position on this stock - and hence dumped 75,000 in 3 tranches ....in anticipation of a massive sell of many of those warrants as i say purchased at 8p ......bonne chance / @+ J ....

Kryso Resources
Extension of CNMIM Transaction Long Stop Date
Extension of CNMIM Transaction Long Stop Date
Kryso Resources
Kryso Resources plc - Announcement 200k Advance (2).docx
28 September 2010
Kryso Resources plc
(Kryso or the Company)
Extension of CNMIM Transaction Long Stop Date
Cash Advance of 200,000 Paid to Kryso
Kryso Resources plc (AIM: KYS), the mineral exploration and development company with gold and nickel-copper projects in Tajikistan, announces that pursuant to the conditional subscription agreement (the Subscription Agreement) entered into on 27 July 2010 with China Nonferrous Metals Intl Mining Co. Ltd. (CNMIM) for the placing (the Placing) of 73,269,539 new ordinary shares of the Company (the Placing Shares) to CNMIM at a price of 15p per share to raise approximately GBP10.99 million before expenses, CNMIM has elected to extend the Long Stop Date, which is the date on which the Subscription Agreement shall terminate unless all conditions for completion of the Placing have been satisfied or waived.
The Long Stop Date was originally 27 September 2010 or, if earlier, the date falling ten business days after satisfaction or waiver of the conditions for completion of the Placing (being approval of the Placing by Kryso shareholders and by the relevant PRC authorities).
The Long Stop Date has now been extended to 27 October 2010 or, if earlier, the date falling ten business days after satisfaction or waiver of the conditions for completion of the Placing (the Extended Date), or, if the Placing has been approved by the relevant PRC authorities by the Extended Date but has yet to be approved by Kryso shareholders, the date falling twenty days after the Extended Date.
In order to extend the Long Stop Date, CNMIM has procured a payment of 200,000 (the Cash Advance) to Kryso. The Cash Advance is treated as an advance payment of the purchase price and shall be deducted from the purchase price payable at completion. In the event that the Subscription Agreement is terminated without completion of the Placing or if completion does not otherwise occur, the Company is obliged to issue to CNMIM 1,333,333 ordinary shares of the Company in respect of the Cash Advance, or, in the event that such shares are not duly issued, to repay such cash advance to CNMIM in cash.
Summary Terms of the Subscription Agreement
* Conditional on completion of the Placing: CNMIM is to receive one warrant per Placing Share, each warrant entitling CNMIM to subscribe for one further new ordinary share of the Company at 21p per share; and shall have the right to appoint and maintain up to two directors to the board of Kryso, one of whom will take the role of Non-Executive Chairman
* CNMIM is to use its best endeavours, subject to completion of the Placing, to procure an offer of debt financing for not less than 70% of the funding required to bring the Pakrut gold project into production
* Proceeds of the Placing are to be deployed to fund the development of the Pakrut gold project along with further exploration within the Pakrut licensed area and at the Hukas nickel-copper project
Further Information
* The Subscription Agreement and Placing remain subject to a number of conditions including, inter alia: the passing by Kryso shareholders of resolutions to authorise the board of the Company to allot the Placing Shares and to waive statutory pre-emption rights in respect of such shares at a general meeting to be convened and held in due course by the Company; and approval by the relevant PRC authorities. It is the intention of the Company that notice of the general meeting will be despatched to shareholders after approvals are received from the relevant PRC authorities
* The number of Placing Shares is subject to adjustment if required to ensure that the number of Placing Shares subscribed for shall represent, on completion of the Placing, 29.9% of the total issued shares of the Company

OK the Pakrut mine is a cracker .......but KYS cant meet capex -they need 10X raised by placing -perhaps 100m ,,,,,,,,,chinese et al wont pay a big premium i am told .. 24p tops which is good considering KYS was 8p not lomg ago ......and lnst holders keeping cards close to chest ......Big holders of a shedload of warrants bought at 8p preparing to sell . Many insts and retail brokers got FREE warrants if agreeing to take principalpositions in placing @ 8p .......A friend who used to work at Wills and co- before they wound themselves up to avoid being Fu***d by the FSA lol has clients who hold 500,000+ ..looking to sell -.....................Look i ll be in touch

ok "J"

I think that the sp will rise regardless of any takeover or anything else....the spot price of gold is now past $1300 and rising and this has 3 million ounces in the ground and possibly a lot more.

tfc

Wont they wait untill the share price was 20+ before selling ?

Kryso Resources
BFS publication date comfirmed

BFS Update
Kryso Resources plc (AIM: KYS), the mineral exploration and development company with gold and nickel-copper projects in Tajikistan, advises that it has been informed by the Beijing General Research Institute of Mining & Metallurgy (BGRIMM) that the final bankable feasibility study on the Companys 100% owned Pakrut gold project in Tajikistan will be available on 12 October 2010.
An announcement detailing the results of the BFS will be made by Kryso as soon as possible thereafter.

Doing fine at the moment......most things were down today...but not this....

Most things were down ? all the junior gold miners were up .

Not all aldwick.....gold had a bit of a rise...followed by a sharp drop and the last time I looked...it was up again.....but KYS is looking very promising with the Chinese on board !.

not all but most

32 million cap with 500 million pounds worth of gold in the ground and perhaps a lot more and now proceeding with fund raising to build the mine...

Pakrut Bankable Feasibility Study Results
Kryso Resources plc (AIM: KYS), the mineral exploration and development company with gold and nickel-copper projects in Tajikistan, is pleased to announce the results of the bankable feasibility study (BFS) completed for the Companys 100% owned Pakrut gold project by the Beijing General Research Institute of Mining & Metallurgy (BGRIMM).
The estimates prepared by BGRIMM for the BFS are not compliant with a standard recognised by the London Stock Exchange. Kryso has appointed Snowden Mining Industry Consultants Pty Ltd (Snowden) to calculate JORC Code compliant Ore Reserve estimates for the Pakrut gold deposit, which will be published as soon as possible. To the extent that Snowdens JORC Code calculation differs from the estimates currently used by BGRIMM, further adjustment to the assumptions made in the BFS (summarised below) may be necessary which could effect the economic prospects of the project.
Highlights :
Mine life 14 years with average gold production of 82,000 ounces per annum over the first 4 years
Life-of-mine operating costs US$377/oz
At a US$897/oz gold price the project would have:
NPV (10%) of US$121 million
IRR of 40%
Payback period of 3.0 years
At a US$1,250/oz gold price the project would have:
NPV (10%) of US$227 million
IRR of 58%
Payback period of 2.7 years
Figures are before tax and allowance for anticipated debt financing
Total capital required for development approx. US$108 million
Optimisation of project prior to construction expected to result in improved economics.
Mining
The BFS is based on the development of Pakrut as an underground mine using sub level open stoping with cemented hydraulic fill as the primary mining method. It is proposed the ore body will be accessed by a decline starting at 2265 metres above sea level and running down to the 1810 metre level. Additionally it is proposed a raise will run up from the 2300 metre level to enable mining up to surface at approximately 2400 metres above sea level. The report envisages a modern fleet of diesel powered mining equipment will be deployed; that mining will be at the rate of 2,000 tonnes per day and approximately 9.8 million tonnes will be mined over the life of the project.
Processing
It is envisaged that three recovery processes will be used in the plant; gravity recovery, flotation, and cyanide leaching of both gravity and flotation concentrates and that a dore bar containing both gold and silver will be produced on site at Pakrut and transported to a smelter for refining. The anticipated overall metallurgical recovery of gold from ore fed to the plant is 85.6%. The plant would have a capacity of 2,000 tonnes per day with crushing, grinding, gravity, flotation, leaching and smelting circuits.
Production Schedule
As set out above, in preparing the BFS BGRIMM have used estimates that are not compliant with a standard recognised by the London Stock Exchange. Kryso has appointed Snowden to calculate Ore Reserve estimates for the Pakrut gold deposit that are compliant with the JORC Code as soon as possible.
Earlier resource estimates, announced to the market on 28 June 2010, are JORC Code compliant. These formed the basis of the estimates prepared by BGRIMM and will form the basis of the further work to be undertaken by Snowden and Kryso in preparing the Ore Reserve estimates.
To the extent that Snowdens JORC Code calculation differs from the estimates currently used by BGRIMM, further adjustments to the assumptions made in the BFS may be necessary which could effect the economic prospects of the project as summarised in this announcement.
The BFS currently anticipates a 14-year mine life commencing in the second half of 2012, with total production over the life of the mine estimated to be 857,000 ounces of gold and 123,000 ounces of silver. Average annual gold production over the first four years of mine life is projected to be 82,000 ounces per annum.
Pakrut Project Financial Projections
The following figures are subject to adjustment on receipt of the Ore Reserve estimates from Snowdons, calculated before tax and do not take account of the anticipated debt financing of the Pakrut project.
Based on BGRIMMs assumptions and a life-of-mine average gold price of US$897/oz:
The potential revenue generated by the project before tax would be US$235million
The net present value (NPV) of the project at a 10% discount rate would be US$121 million
The projects internal rate of return (IRR) would be 40%
The projects capital payback period would be 3.0 years
The gold price of US$897/oz has been derived by using a consensus of forecasts for the next four years sourced from Bloomberg, and US$850/oz for the years thereafter.
Based on BGRIMMs assumptions and a life-of-mine average gold price of US$1,250/oz:
The potential revenue to be generated over the life of the project, before tax, would be US$505million
The net present value (NPV) of the project at a 10% discount rate would be US$227 million
The projects internal rate of return (IRR) would be 58%
The projects capital payback period would be 2.7 years
The life-of-mine average operating costs of the project are estimated at US$377/oz. A royalty of 6% of gross revenue payable to the Tajik government has been included in the operating costs of the project. The current corporate tax rate in Tajikistan is 25%.
The report estimates the total capital investment required to bring the Pakrut project into production to be US$108 million including a 6% EPCM (engineering, procurement and construction management) provision and a 15% contingency provision. The total capital investment figure includes the costs of plant construction; underground mine development; mining and ancillary equipment; infrastructure including electricity supply, river diversion, water diversion dam and tailings dam; offices, workshops and accommodation buildings on site; working capital; and owners costs until the start of production.
Further optimisation of the project prior to construction is expected to result in improved project economics.
Current Drilling
Drilling is continuing at Pakrut, including infill drilling intended to enable the Inferred resources of the Pakrut deposit, set out in the announcement of 28 June 2010, to be converted to the higher Measured and Indicated categories. Drilling has commenced at Eastern Pakrut with the objective of defining new resources at this location. Drilling results will be reported as soon as they are available.
Trevor Davenport, Non-Executive Chairman of Kryso, comments:
The results of the BFS show Pakrut to be very exciting, with further refinements to the project to be made where appropriate before the commencement of construction.
Our number one objective now is to secure a complete financing package for mine construction at Pakrut and to bring the project into commercial production at the earliest opportunity.
Dr. Trevor Davenport (B.Sc, M.Sc, Ph.D, MIMM, C.Eng), Non-Executive Chairman of Kryso Resources plc has, reviewed the information contained in the announcement, and consents to its inclusion in the form and context in which it appears.

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