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Oxus Gold settles dispute with Eurogold

Oxus Gold ( [url=https://www.proactiveinvestors.co.uk/chart.asp?OXS new=true]LSE: OXS[/url] ) and Eurogold ( [url=https://www.proactiveinvestors.co.uk/chart.asp?EUG new=true]AIM: EUG[/url] ) announced that they had reached a settlement in a

Oxus Gold and Eurogold announced that they had reached a settlement in a dispute over the termination of an asset sale in 2006 of Eurogold's Ukrainian gold assets. Oxus Gold said that withouth accepting any liability, it had agreed to pay Eurogold A$7.95 million, of which A$6.78 would be in cash and the remainder in shares in Oxus Gold.

Shares in Eurogold jumped 44% on the news, though the company also confirmed that it ahd entered into a no win no fee agreement with IMF Australia. As Eurogold reached a settlement, it will have to pay 30% of the proceeds to IMF Australia.

Subsequently Eurogold has disposed of its Ukrainian gold mining assets to Resource Invest LLC for US$5 million, for which it has received US$2 million already, with the final US$3 million payment due when certain milestones are met. Eurogold said that once it received the final payment, it would have a cash position of A$10 million.