Business Weekly - Cambridge, UK

It is the second withdrawal by a Standard Bank co-funder and probably spells the end of Standard’s involvement in the project altogether.

“We have to assume that Standard are out of the picture as is this is the second withdrawal of a partner following the EBRD (European Bank for Reconstruction and Development) decision,” said TSG’s finance director, Simon Olsen.

TSG’s share price eventually settled at 39.5 pence a share, down 26.85 per cent to 14.5p, valuing the company at £16.26 million, almost £6m below the previous day’s close of £22.23m.

TSG, headquartered on the outskirts of Cambridge, will consult with its major shareholders, AngloGold Ashanti Ltd and UFG Private Equity Fund I, LP on alternative approaches to bring Asacha into production during the latter part of 2008.

The company is maintaining a positive outlook on the Asacha project and believes that at current gold prices, Asacha still has plenty of legs and the ability to deliver an attractive return.

Olsen, said: “There is nothing wrong with the project at all. We have time to identify a new backer will be careful how we spend the resources that we have. We have time for that and it will not affect the timescale of the project. The key spending period is the summer, that is when the construction season really starts.”

TSG also reported that UFG has withdrawn its proposal in respect of the possible acquisition by TSG of UFG’s interest in the Kamchatka based OAO Sibirskiy Gorno-Metallurgichesky Alyans, following receipt of an opinion from Seymour Pierce to the effect that the terms of the transaction, as proposed, were not fair and reasonable to TSG.