AGU Angus&Ross

 

TIDMAGU 
 
RNS Number : 9314U 
Angus & Ross PLC 
01 July 2009 
 

ANGUS & ROSS PLC 
(AGU.L) 
 
 
Unconditional acquisition of the assets of Nalunaq gold mine in Greenland and 
related loan arrangement 
 
 
Angus & Ross plc ("A&R" or "the Company") is pleased to announce that it has 
unconditionally acquired all the assets, infrastructure, inventories and 
goodwill at the Nalunaq gold mine in Greenland from Nalunaq Gold Mine A/S 
("NGM"), a subsidiary of Crew Gold Corporation ("Crew") for a total 
consideration of $1 million cash. 
 
 
The Company intends to quickly bring the Nalunaq mine back into production, 
which will hopefully produce near term cash flow for the Company. 
 
 
A further $500k will be due for payment by the earlier of 31 August 2009 or 
within 10 working days of agreement to the acquisition by the Joint Committee of 
members of parliament of the Greenland Home Rule Government and upon 
satisfactory transfer by NGM to the Company of the DKK16 million BMP Mine 
Closure Security Fund. 
 
 
The deal reflects a revision to that announced on 7 April 2009 which originally 
envisaged the purchase of shares of NGM. 
 
 
Payment of the initial proportion of the consideration has been financed from a 
$1.25 million three month loan provided by Cyrus Capital Partners LP ("Cyrus"). 
The loan is subject to an arrangement fee of $93,750 payable in cash and will 
bear interest at 15% per annum. The loan must be repaid earlier if any new debt 
financing is raised, if any funds are drawn down from the recently announced 
Standby Equity Distribution Agreement entered into with Yorkville Advisors LLC 
or from the net proceeds of any other equity raising. 
 
 
Cyrus currently holds 37.5 million warrants at an exercise price of 20p, with an 
expiry date of 10 July 2010 and is therefore considered to be a related party. 
 
 
The directors of the Company consider, having consulted with WH Ireland Limited, 
the Company's Nominated Adviser, that the terms of the transaction are fair and 
reasonable insofar as its shareholders are concerned. 
 
 
 
 
Nicholas Hall, Chief Executive Officer, commented: 
"The completion of the acquisition of the Nalunaq mine is a major step in the 
transformation of the Company. We believe the Nalunaq mine can be operated 
profitably by adopting a mining method that will enable us to employ local 
labour and by producing concentrate on site. We look forward to progressing this 
opportunity." 
 
 
+----------------------------------+------------------+ 
| Enquiries:                       | 07931 709 053    | 
| Angus & Ross plc                 | 0207 936 5200    | 
| Nicholas Hall, Chief Executive   | 0207 562 3366    | 
| Fox-Davies Capital               | 0161 832 2174    | 
| Jason Bahnsen                    |                  | 
| Bishopsgate Communications       |                  | 
| Limited                          |                  | 
| Nick Rome                        |                  | 
| WH Ireland Limited               |                  | 
| Adrian Kirk                      |                  | 
|                                  |                  | 
+----------------------------------+------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 ACQKGGGNFMDGLZM 
 

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