Gold miner Aurum Mining Plc (AURU.L) said on Friday it won a civil case over the ownership of its principal asset in Kyrgyzstan and that it planned to return 33 pence per share cash to shareholders.
The company said it proposed to involve the Kyrgyz government as a 20 percent stakeholder in its principal asset, the Andash gold and copper project, in return for state support and assistance.
The case was heard in full and Andash Mining Co won the case on its merits and all the claims of the plaintiffs were found to be groundless, Aurum said in a statement.
Now that the court case has been closed, Aurum is in a strong position to work with the Kyrgyz authorities to realise value from the Andash asset for which it has signed a memorandum of understanding, it said.
Aurum, which terminated offer talks for the company earlier this year, also said it would return about 16 million pounds ($22.68 million), or 33 pence per share, to its shareholders.
The company still has on-going commitments and outstanding liabilities which once resolved could lead to the potential of a second payment to shareholders, it added.
In August 2008, Aurum reached a settlement by buying Marsa AG, which had brought the suit against Aurum's units Andash and Kaldora Co. Ltd.
Aurum shares were up 4.75 pence at 33.25 pence at 0952 GMT. ($1=.7054 Pound) (Reporting by Balachander Surianarayanan in Bangalore; Editing by Gopakumar Warrier)© Thomson Reuters 2009 All rights reserved