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Manas Resources Completes $4.6M Capital Raising For Shambesai Gold Project

Manas Resources (ASX: MSR) is now well funded to accelerate permitting and development activities at its wholly owned Shambesai Gold Project in the Kyrgyz Republic after completing a A$4.6 million private placement.

This follows the placement of the second tranche of 14.3 million shares priced at $0.10 after the receipt of shareholder approval on 27 May 2013.

It adds to the Tranche 1 placement of 32.63 million shares that was settled in April.

Pre‐development activities at the project will include completion of the Environmental and Social Impact Assessment for permitting purposes, construction of the mine camp, commencement of road works and completion of geotechnical and plant‐site sterilisation drilling.

Manas had in late May completed a Bankable Feasibility Study confirming that Shambesai is a low‐cost, high‐margin gold project that is technically simple.

Key takeaways from the study, carried out by with Perth‐based independent engineering consultants Mintrex Pty Ltd include:

- Total life of mine costs (C3) of US$676 per ounce of gold with cash costs of US$387 per ounce;
- Projected net cash flow of US$148 million after capital, taxes and royalties;
- Capital expenditure to first gold pour of US$41M with an expected pay back of 11 months; and
- Post‐Tax Net Present Value (NYSE:NPV) of US$105M with an Internal Rate of Return of 67%.

The BFS is based on a Proved and Probable Reserve of 2.54M tonnes at 3.4 grams per tonne gold for 277,000 ounces of gold as well as a gold price of US$1,400 per ounce.

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