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Central Asia resources plans share sale for Kazakh gold mine
Sydney, December 23 200 8
Central Asia Resources Ltd., an Australian company planning to develop two Kazakhstan gold mines, may sell shares next year to fund the smaller of the projects, Bloomberg agency reported.
Central Asia wants to reopen the Dalabai mine, which may produce 30,000 ounces of gold a year for four years, Jason Stirbinskis, managing director of the Perth-based company, said in an interview. It may cost between $7.5 million and $10 million to restart the operation, he said.
According to Bloomberg, Australian companies are selling shares to raise money as the global credit crisis squeezes debt markets and slows economies. Development of the larger $50 million Altyntas mine has been slowed until money markets improve.
Liquidity may return to global debt markets late 2010, Stirbinskis said. Development of Altyntas is unlikely before then unless those markets make an early recovery, he said.
Central Asia plans to seek funds for Dalabai mid next year, he said, without specifying how much. The project model assumes a gold price of $700 an ounce, though bullion may reach $1,000 "late in the second half" of 2009, he said.