Oxus seeks gold hunt funds

THERE is a glitter of gold for Oxus Mining in Uzbekistan, but it is still in the ground and Oxus shareholders will have to stump up their own cash reserves to extract it.

Having raised $31m (£22m) from Sociètè Gènèrale in the form of debt and $10m through insured subordinated debt, founders Roger Turner and Richard Wilkins, who launched the venture in a Knightsbridge pub, now have to raise another $6.5m from shareholders. Broker Brown Shipley Securities is to undertake the task and details will be announced shortly.

Meanwhile, estimated reserves at the Amantaytau goldfields in Uzbekistan have almost doubled to 2.3m ounces. The engineers are on standby to start removing spoil to create the open-cast pits to get at the gold, and optimists talk of the first gold bar appearing next year.

They are buoyed by Newmont Mining, which has been in the inhospitable region since 1995 and currently recovers 450,000 ounces of gold a year.

Oxus also has interests within 50 kilometres of the Muruntau mine, which has been operating for 30 years and has produced 45m ounces. Its reserves are estimated to be sufficient for another 30 years. Oxus shares today added 1/4p to 12 1/2p.