Kentor Gold (ASX: KGL) has updated the market regarding the Andash Mining Company.
Kentor Gold has advised that the Chui Regional Court has handed down its written decision on the matter relating to the minority ownership in the Andash Mining Company.
The Court has found in favour of the General Prosecutor, who asserted that the transfer of a 20% holding in the Andash Mining Company between the minority owners was invalid.
There is no question over Kentor's 80% ownership of Andash.
The Court now requires Kentor to re-register Andash as a company 100% owned by Kaldora (100% Kentor) and then requires Kaldora to make an offer to sell the 20% interest to the Kyrgyz Government.
Although the decision can still be appealed further, Kentor believes that the General Prosecutor’s legal case is now very well tested.
Located in the Kyrgyz Republic, Andash is targeted to produce 70,000 gold ounces and 7,400 tonnes of copper annually for an initial six years, with high potential for expansion.