Shareholders in Ennex International approved the acquisition of Zinc Corporation of Kazakhstan at an extraordinary general meeting yesterday.
Zinc Corporation holds a 95 per cent interest in a 4 million tonne zinc oxide deposit at Shaimerden in northwest Kazakhstan. The other 5 per cent is held by local Kazak interests.
The acquisition is being paid for through the issue of 22.5 million ordinary Ennex shares and $2.5 million (£1.65 million) in cash, along with warrants to subscribe for 15 million ordinary shares at an exercise price of 30p per share.
Ennex said it had sought and received a 12-month lock-in of the 22.5 million shares, which cannot be disposed of until January, 1999.
Chairman Mr Brian Cusack told shareholders that Ennex had carried out due diligence work on the property since last May and has spent $600,000 confirming the validity of previous work.
"We are satisfied that the ore body does contain around 4 million tonnes at a grade of 25 per cent zinc," he said. The exploration company said it would now implement a full feasibility study which would begin in January 1998 and should be completed within the year. "Production could begin as early as the year 2000," managing director Mr Christian Schaffalitzky said.
Zinc Corporation is a British Virgin Islands incorporated company, registered in the Channel Islands. Trinity Holdings Limited, an Antiguan registered company, is listed in the acquisition document as owning the entire issued share capital of Zinc Corporation.
Mr Coyle said Ennex had carried out appropriate due diligence and had received the appropriate confirmation of title along with the necessary government documents.
