Re Agreement

RNS Number:6288L
Trans-Siberian Gold PLC
28 April 2005


news release

For immediate release:  28 April 2005

                           Trans-Siberian Gold plc

 Agreement reached on revised terms for second investment by AngloGold Ashanti

LONDON: 28 April 2005 - Trans-Siberian Gold plc (TSG) is pleased to report that
agreement has been reached with AngloGold Ashanti Limited (AGA) in relation to
revised terms for the second share subscription envisaged in the agreement with
AGA dated 30 June 2004, and subsequently amended on 22 December 2004 and 15
April 2005.

A revised subscription price of #1.30 per share has been agreed, as compared to
#1.494 per share, reflecting the increased capital cost of the Asacha mine
development which is nevertheless projected to provide an acceptable rate of
return for TSG. The Subscription is conditional on TSG shareholder approval. A
notice calling an extraordinary general meeting for this purpose will be posted
shortly together with a letter to shareholders on the status of the Asacha
project.

The second subscription was originally conditional, inter alia, on TSG entering
into a binding agreement to implement project financing for Asacha, however in
the December 2004 amendment this condition was removed. Instead, TSG and AGA
agreed that the second subscription would be conditional on revised
implementation and financing plans for the Asacha project being unanimously
approved by the TSG Board and any regulatory filings in the Russian Federation
necessary for the revised implementation plan having been made. These conditions
have now been waived or satisfied. The subscription will remain subject to the
outstanding conditions, such as no material adverse change to the business of
TSG having occurred. These conditions will remain in place until TSG shareholder
approval for the transaction has been obtained.

AGA currently has a 17.5% equity interest in TSG that will increase to 29.9%
upon completion of the second subscription. The second subscription will involve
the issue of 6,131,585 new ordinary shares to AGA for a consideration of
#7,971,060.50.

Assuming shareholder approval is obtained the transaction will then be
completed. Following the subscription AGA will continue to have all the rights
contained in the original subscription agreement, including:
          
     -    two appointees on TSG's Board;
     -    rights of first refusal over the financing of the Veduga project;
     -    pre-emptive rights to a 51% interest in TSG's new mining or 
          exploration projects (subject to certain exceptions); and
     -    anti-dilution rights in the event of further share issues by TSG.

Furthermore, the three-year technical consultancy agreement effective from July
2004 continues in force.

TSG is looking to strengthen its management team and is therefore in the process
of recruiting an executive Operations Director. A short list of candidates has
been identified and an appointment is expected to be made shortly.  The
Operations Director will have full authority over all operational issues
including the implementation of the Asacha and Veduga projects.

Jocelyn Waller, TSG's Managing Director comments: "We are pleased that AngloGold
Ashanti is taking its interest in and partnership with TSG to the next level.
Together we can now concentrate on getting the Asacha project financed and
built, the Veduga feasibility study completed satisfactorily and continue to
explore successfully.  It is a good outcome for all parties."


                                      Ends


For further information, please contact:

Jocelyn Waller,
Managing Director,
Trans-Siberian Gold plc                             01223 265 761/ 07778 164 376

Simon Olsen,
Finance Director                                    01223 265 768/ 07770 484 965
Trans-Siberian Gold plc

Keith Irons,                                        020 7444 4155/ 07885 356 639
Simon Rothschild                                    020 7444 4153/ 07703 167 065
Bankside Consultants

Michael O'Brien,                                    020 7523 8423
Chris Howard,                                       020 7523 8314
Collins Stewart


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END
AGRUBSWRVORSUAR
Trans-siberian Gold (LSE:TSG)
過去株価チャート
から 9 2024 まで 10 2024