Aurum suspends shares after subsidiary named in civil case
04-03-2008
Aurum said its subsidiary Andash Mining Company has been named as a third party in a Kyrgyzstan court case.
The company, which invests in mining exploration and is listed on AIM, has suspended trading of its shares due to a "lack of clarity" surrounding the situation.
According to Aurum, proceedings have been brought against Marsa Gold, a company controlled by Oleg Kim, a former employee and founder of Andash Mining Company.
The case concerns the transfer of a number of assets, including Andash, before Aurum acquired the company in January 2005.
As a result of the civil proceedings, the Kyrgyzstan court has ordered a temporary cessation of any further financial transactions within all named third parties, including Andash Mining Company.
Andash Mining Company will be lodging an appeal against the temporary cessation. Aurum added it would make further announcements soon.
Aurum acquired the licence to the Andash exploration area in northern Kyrgyz in January 2005 and has since found a reserve of 1.1 million ozs of gold and gold equivalent in copper.
Initial ouput from the area is expected in the second half of next year.
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