On May 21, 2008, an Extraordinary General Meeting in Central Asia Gold AB
(publ) decided to increase the company's share capital through a rights issue.
The prospectus describing the terms in the rights issue is available for
shareholders and the public from today. The prospectus will be distributed to
the company's shareholders starting June 5th, 2008. It will also be available
on the company's website www.centralasiagold.se, and can be ordered from the
company by phone +46 8 624 26 80. The prospectus is also kept available at the
company's head office, with address Brovägen 9, SE-182 76 STOCKSUND, Sweden.
The rights issue is carried out according to the following terms:
• Shareholders are entitled to receive one (1) unit right per held share. Seven
(7) unit rights entitles to subscription of one (1) Unit
o One (1) Unit consists of one (1) new share and one (1) share warrant. The
share warrant entitles to the subscription of one (1) new share à 0,55 SEK per
share during fall, 2008
o Subscription can only be made in Units and thus can subscription not be made
in shares and Share warrants separately. Allotment can only be made in Units.
After subscription and registration shares and share warrants will be separated
and trading will commence in shares and share warrants respectively and not in
Units on NGM Equity
• The subscription price per Unit is 1,10 SEK. Subscription price per share is
0,55 SEK and thus are share warrants issued free of charge
• Subscription of shares through use of share warrants can take place from the
time when the issuance of the share warrants is registered at the Swedish
Companies Registration Office until the 5th of December 2008. The subscription
price per share is SEK 0.55. The share warrants will be listed on NGM Equity
• The offering is fully guaranteed by commitments to subscribe from board
members, management of the company, major shareholders and by Glitnir AB
• Central Asia Gold will be provided with 64.8 MSEK, without regard to costs in
relation to the transaction, through the offering and another 32.4 MSEK given
full utilization of all share warrants
• Subscription period: June 9th until June 23rd, 2008
• Trading with unit rights will take place between the 9th of June 2008 until
the 17th of June 2008
• Trading in Unit rights will commence on the 9th of June 2008, and last until
the issue is registered at the Swedish Companies Registration Office
Glitnir Corporate Finance AB is financial advisor to Central Asia Gold in
connection with the offering.
For more information, please contact:
MD Torbjorn Ranta, tel: +46 (0)8 624 26 80, fax: +46 (0)8 624 37 20, mobile
phone: +46 (0)70 8 85 55 04, e-mail: torbjorn.ranta@centralasiagold.se,
Website: www.centralasiagold.se, Post- and visiting address: Brovägen 9, SE-182
76 Stocksund.
Central Asia Gold AB is a Swedish mining company focused on gold production and
exploration in Russia and Mongolia in the central parts of Asia. The gold
production was initiated in late January 2005 and the assets today encompass
some 645,000 troy ounces (1 troy ounce = 31.1 g) of C1/ C2 Russian gold
reserves.
Cautionary Statement: Statements and assumptions made in this report with
respect to Central Asia Gold AB's ("CAG") current plans, estimates, strategies
and beliefs, and other statements that are not historical facts, are
forward-looking statements about the future performance of CAG. Forward-looking
statements include, but are not limited to, those using words such as "may",
"might", "seeks", "expects", "anticipates", "estimates", "believes",
"projects", "plans", strategy", "forecast" and similar expressions. These
statements reflect management's expectations and assumptions in light of
currently available information. They are subject to a number of risks and
uncertainties, including, but not limited to, (i) changes in the economic,
regulatory and political environments in the countries where CAG operates; (ii)
changes relating to the geological information available in respect of the
various projects undertaken; (iii) CAG's continued ability to secure enough
financing to carry on its operations as a going concern; (iv) the success of
its potential joint ventures and alliances, if any; (v) exchange rates,
particularly between the Russian rouble and the U.S. dollar. In the light of
the many risks and uncertainties surrounding any gold production and
exploration company at an early stage of its development, the actual results
could differ materially from those presented and forecast in this report. CAG
assumes no unconditional obligation to immediately update any such statements
and/or forecasts.
