1 March 2012
Oxus Gold plc
Oxus Gold plc ("Oxus" or the "Company") is pleased to announce that on 29 February 2012 it entered into a litigation funding agreement with a subsidiary (the "Funder"), of the Calunius Litigation Risk Fund LP. Calunius Capital LLP, is the exclusive investment advisor to the Fund which specialises in funding commercial litigation and arbitration claims. Calunius Capital LLP is authorised and regulated by the Financial Services Authority as an investment adviser.
Under the terms of the litigation funding agreement, the Funder has agreed to pay Oxus's legal costs in relation to the international arbitration proceedings against the Republic of Uzbekistan (the "Defendant") on a non-recourse basis.
Oxus will continue to have complete control over the conduct of the international arbitration proceedings, insofar as the proceedings relate to the Company's claims, and continues to have the right to settle with the Defendant, discontinue proceedings, pursue the proceedings to trial and take any action Oxus considers appropriate to enforce judgement.
Under the terms of the privileged litigation funding agreement, the Company has given certain warranties and covenants to the Funder. In respect of the provision of litigation finance, Oxus has agreed to pay to the Funder a material portion of any final settlement of the arbitration claim against the Defendant (the "Funder's Fee"). The Funder's Fee shall only become payable upon a final settlement of the arbitration claim and the value of the Funder's Fee is dependent upon a number of variables including the value of any settlement and the length of time taken to reach a settlement. The agreement also provides that the amount of the Funder's Fee shall not exceed the amount of the aggregate proceeds of the litigation under any circumstances.
Details of the background to the Company's dispute with the Uzbek Government can be found in the Company's annual report and accounts for the 12 months ended 31 December 2010, the interim results for the six months to 30 June 2011 and the announcement made by the Company on 14 November 2011 headed "Request for Restoration of Trading on AIM".
Oxus Gold plc
Richard Shead, Chairman
+44 (0) 20 7907 2000
Fairfax I.S. PLC
+44 (0) 20 7598 5368