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JSC Atomredmetzoloto extends all-cash offer for Khan Resources
JSC ATOMREDMETZOLOTO EXTENDS ALL-CASH OFFER FOR KHAN RESOURCES
TORONTO, February 1, 2010 — JSC Atomredmetzoloto («ARMZ») today announced that it has extended its offer (the «Offer») to acquire all of the issued and outstanding common shares of Khan Resources Inc. («Khan») (TSX: KRI) for all-cash consideration of C$0.65 per common share of Khan (each, a «Khan Share») to 5:00 p.m. (Toronto time) on March 1, 2010, unless extended or withdrawn. Previously the Offer was set to expire at 5:00 p.m. (
ARMZ has received notice that the Investment Review Division of Industry
ARMZ also acknowledges the announcement issued today by Khan that it has entered into a definitive agreement with CNNC Overseas Uranium Holding Ltd. («CNNC»), an indirect wholly owned subsidiary of China National Nuclear Corporation, pursuant to which CNNC has agreed to make an offer to acquire all the issued and outstanding Khan Shares for C$0.96 in cash per Khan Share (the «CNNC Offer»). ARMZ is extending its Offer so that it can properly consider its alternatives in response to the CNNC Offer, in addition to allowing additional time to receive approval under the
In addition, ARMZ also notes that there continues to be contradictory disclosure regarding the licensing and ownership issues related to the Dornod Uranium Property. Specifically, the Mongolian Nuclear Energy Agency issued a news release on January 29, 2010 in response to the non-binding memorandum of understanding («MOU») entered into between Khan and MonAtom LLC («MonAtom») in which it states that some clauses of the MOU violate Mongolian state policies on radioactive mineral resources and nuclear energy and some provisions of the Mongolian Law on Atomic Energy and that, as a result, the MOU cannot be implemented .
In light of the news release by the Mongolian Nuclear Energy Agency, it appears that the MOU, including the clauses stipulating re-registration and approval of the mining license held by CAUC and the exploration license held by Khan
ARMZ also believes that MOU was executed in violation of the international obligations of the Government of Mongolia under the inter-governmental treaty between
ARMZ remains committed to strictly comply with the legal obligations of the Government of Russia under the Inter-Governmental Treaty and to pursue the development of the Mongolian uranium sector in cooperation with Mongolia and in accordance with the applicable international treaties and the requirements of Mongolian laws.
All other terms of the Offer described in the offer to purchase and related take-over bid circular dated November 30, 2009, remain unchanged.
ARMZ anticipates that the Notice of Extension will be mailed to beneficial holders of Khan Shares, and furnished to intermediaries for subsequent transmittal to beneficial holders of Khan Shares, on or about February 1, 2010.