Tengri Resources offloads its major operations

12th Apr 2016 14:21

(ShareCast News) - Tengri Resources announced it was offloading its major operations on Tuesday, selling Kami Associates and Tatianna to Socagest SA for a total consideration of $6m.The two subsidiaries hold the AIM-traded company's mineral exploration and development operations in Talas, Kyrgyz Republic.Tengri had announced on 16 December that, following completion of a scoping study for the Taldybulak project, it had decided not to proceed with development.It then began a strategic review of the Taldybulak and Andash projects.Given the general weakness in global resources prices, Tengri's board said it had now decided to devote additional resources to search for opportunities outside its existing areas of operation, with a view to lower start-up costs and a faster route to production and cash flow."Accordingly, the company had decided to effect a sale of the Talas mining interests through the disposal," Tengri's board said in a statement.Because the disposal was creating a fundamental change in the business of Tengri, it will become an AIM Rule 15 cash shell, giving it six months to seek out a reverse takeover or apply for readmission as an investing company.The disposal remained conditional on approval from the company's shareholders at an extraordinary general meeting, set down for the morning of 9 May.Shares in Tengri Resources had pared back some of their earlier gains, though at 1420 BST they were still ahead by 22.34% at 2.88p.