Hansa to buy Zhumba gold project in Kazakhstan

Canada-based mineral exploration company Hansa Resources Ltd is in the final stages of acquiring the Zhumba gold project in the Kokpektinsky and Ulansky districts in Eastern Kazakhstan, company president John Nugent announced yesterday.

The Zhumba property consists of two claims covering 259.76 sq km and is located in the southeast section of the West Kalba gold belt. The regional centre of Ust Kamenogorsk is located 200km from Zhumba along a paved road.

Zhumba was discovered in 1871 as a placer deposit and since then there has been on-going small-scale placer production in the region. Initial work planned by Hansa will include compilation of all historical data, reconnaissance sampling of three styles of mineralisation including metallurgical testing as well as geological and structural mapping.

Hansa has concluded an agreement with Altynor Mining Ltd for the effective acquisition of 81 percent of the shares of Altyn-Komir Ltd. Hansa will issue 10 million common shares to Altynor upon completion of conditions precedent. The controlling shareholder of Altynor is company president Vladimir Benes with a 42 percent shareholding.

Hansa has also concluded an agreement with the owner of Altyn-Komir for effective acquisition of a further 9 percent interest in Altyn-Komir for the consideration of $200,000 to be paid in cash.

The Zhumba gold property was acquired by the vendors directly from the government by way of a public bid process. Hansa will assume all underlying commitments made by Altyn-Komir in relation to the property which include expenditure commitments over six years of $4.7 million with no minimum annual commitment. There is a $50,000 cash signing bonus to be paid to a local government authority on completion of conditions precedent.

On closing Hansa will own 90% of Zhumba and have 67,413,317 common shares issued and outstanding of which 14.83 percent will be held by Altynor.

"The Zhumba gold property lays the foundation for Hansa's exciting new strategy and alliance with Altynor. The alliance brings together the potential for a pipeline of outstanding gold targets in world class gold belts of Central Asia and a highly experienced international management and technical team," said Nugent. 

On closing of the acquisition, Benes will be appointed president and CEO of the company.

"We are excited about pulling together Altynor's technical and management skills on the ground with Hansa's knowledge of capital markets and financing of exploration projects. Hansa is now located in one of the best endowed gold and copper regions of the world, with an excellent infrastructure, mining culture and strong support from the local community. Our first exploration project carries all characteristics and footprint of an exciting orogenic gold prospect and we look forward to applying modern exploration methods to test it for the first time," Benes said.

Tag: Gold Mine | Kazakhstan | Canada

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