Junior mining listing

JUNIOR MINING LISTING AND FINANCING PROGRAM

FROM ASTANA INTERNATIONAL EXCHANGE


Dear Miners and Prospectors,

Astana International Exchange (‘AIX’ or ‘Exchange’) hereby announces the launch of the Junior Mining Program (‘the Program’). The aim of the Program is to select junior miners/prospectors and assist them with raising financing through the Astana International Exchange. This invitation is open only to the companies duly registered in the Republic of Kazakhstan and holding a valid mining license issued by the Government of Kazakhstan.

You will find a more detailed description of the Program below. We will describe our requirements to qualified candidates, timing and selection process, notification and steps necessary towards completing a successful listing at Astana International Exchange. We intend to keep this program going for some time into the future in order to give chance to participate to as many junior mining companies as possible. The companies not selected during the first round will always have an opportunity to participate again.

Aim of the Junior Mining Program

Kazakhstan is one of the leading mining countries in the world with an established track record and world class mineral deposits. Technological progress and mining prowess do not always move in stride with market conditions. Many junior mining companies in Kazakhstan experience difficulties obtaining financing due to non-availability of bank loans and the lack of other, market-based funding mechanisms. Astana International Exchange aims to close this gap by introducing its Junior Mining Program.

The aim of the Program is to:
(a) select up to 5 junior miners with valid exploration and/or extraction mining licenses,
(b) help raise financing at international markets and,
To reach this goal, AIX will provide debt financing for up to 80% of the costs necessary to incur for a Candidate Company to prepare to raise capital internationally (see Section VII – Terms of Financing). Junior miners willing to participate in this program will have to contribute no less than 20% of anticipated costs.

Costs covered as part of the program include preparation of Competent Person’s Report (JORC or NI 43-101), conducting legal due diligence and 2 years’ audited financial statements.
Other costs relating to any capital raise, including a broker’s fee and travel expenditures are not covered under this Program’s terms.
Upon preparation of all necessary documentation , successful candidates will be assisted with conducting a road show at the world’s premiere financial centers – London, Toronto, New York – and completing the targeted financing rounds.
Successful capital raising by Kazakhstan based junior mining companies will represent a major milestone towards development of alternative financing options for junior miners in Kazakhstan and Central Asia.

Minimum requirements to qualified candidates

To apply for the Program a Candidate Company needs to have:

  • A valid mining license issued by the Government of Kazakhstan prior to December 31, 2020, with an expiration date later than December 31, 2024.
  • Geological information deemed adequate by a Competent Person (independent geologist).

The mining license should not be pledged or have any liens attached to it.

The Candidate Company should not be a party in any legal dispute and/or arbitration procedure that might impede its efforts to list at AIX, nor should the Candidate Company be restricted in its desire to list at AIX by any contract, covenant, limitation and/or court/government ruling.

We will especially welcome the candidates with licenses for copper, gold, manganese, chrome, vanadium, tin, lead, silver, zinc, iron, bauxites as well as rare earth elements.

The candidates must demonstrate the capability of the management to successfully drive the company towards exploration/production goals, clearly understanding the mining/exploration process and if in pre-production stage – proving the viability of mineral extraction technology.

Application process

  • Junior mining companies willing to participate in this Program must fill out a brief Questionnaire. The Application submission period will run from December 7, 2021, until January 15, 2022. Once AIX receives the completed Application, it will evaluate the suitability of a candidate Company for participation in this Program.
  • The candidates deemed eligible for the Program will be contacted separately by an AIX representative with further details. AIX reserves the right not to explain the reasons why a candidate company has not been selected for further participation in the Program.
  • Selected candidates will be provided with a web-link and asked to fill out Questionnaire #2 where we will ask questions about your business and underlying mineral property.
  • Applications will be reviewed by the Selection Committee once they are received.
  • Selection Committee will meet during the first quarter (‘Q1’) of 2022 to make the final selection among the Candidate Companies.
  • Successful selected companies will be notified by AIX.
  • Successful candidate-company will be required to sign a set of binding agreements with AIX.
  • Once the candidate company signs a set of binding agreements, we will proceed with preparation of Competent Person’s Report, audited financial statements and an information memorandum.
  • Upon readiness of the documents (see Item 7 above), candidate company may apply for listing at AIX.
  • We will then take candidate-companies on a road show to meet with potential investors.
  • Ideally, the road show should culminate with signing financing agreements and completing the first financing round.

Selection Committee

To maintain the selection process transparency, Astana International Exchange has established the Selection Committee comprising representatives from the following organizations:

  • Astana International Exchange.
  • Nazarbayev University School of Mining and Geosciences.
  • SRK Consulting (Kazakhstan).

The representatives of these organizations will be jointly selecting the Candidate Companies most suited for the purposes of this Program. While selectingThe representatives of these organizations will be jointly selecting the Candidate Companies most suited for the purposes of this Program. While selecting the Candidate Companies, special attention will be paid to the following factors:

  • Quality and quantity of the underlying mineral deposit.
  • Marketability of the product.
  • Logistics of moving supplies to a prospective mine site and moving ore/concentrates/ready product from the prospective mine site.
  • Assessment of electricity and water supply around a proposed mine site operations area.
  • Quality and availability of the geological data.
  • Experience of the management.
  • Financial position of a Candidate Company.
  • Assets and capabilities of a Candidate Company.

Selection Committee Meeting Dates

Selection Committee will hold several meetings during Q1 2022. During these meetings the Committee members will carefully review each candidate’s application. The final meeting will be conducted also during the Q1 2022.

A total of up to 5 companies will be selected. The number of the successful companies will depend upon the number of initial applicants as well as other factors that may or may not limit the ability of the selected companies to participate and lead to a successful completion of a financing round.

Selected Company Notification and Binding Agreement

Following the final meeting of the Selection Committee, a Notice to the successful participants will be sent out during Q1 2022. We will contact all the Candidate Companies who applied for participation in the Program. We intend to make this Program ongoing throughout the year, thus giving an equal chance to participate to as many junior mining companies as possible. At the same time we reserve the right not to explain the reasons and criteria for selecting successful candidate-companies.

If a successful Company agrees to the Terms of Financing (see below), it will then be required to sign a set of Binding Agreements with Astana International Exchange

Terms of Financing

In accordance with the terms of the binding agreements Astana International Exchange will provide a loan covering up to 80% of the required expenditures necessary to organize a successful capital raising for a Candidate Company at the international financial markets. The loan is interest free, with a fixed repayment term, secured by a collateral.

The expenditures covered under the terms of this Program include the following:

  • Competent Person’s Report (JORC or NI 43-101).
  • 2 years’ audited financial statements, unless a Candidate Company already had these statements audited by an internationally recognized audit firm acceptable to the AIX.
  • Conducting legal due diligence and preparation of a report upon conclusion of the due diligence procedures.

Other expenditures directly related to organizing the financing round, e.g. broker’s fee are not covered under the terms of the Program.

Candidate Companies selected for participation in this Program must sign a Loan Agreement with AIX as well as other binding agreements.

The Exchange will make an individually tailored estimate of the costs involved in preparing each Candidate Company for a financing round.

The Financing Agreement and any dispute, controversy, proceedings or claim of whatever nature arising out of or in any way relating to this agreement or its formation (including any non-contractual disputes or claims), shall be governed by and construed in accordance with the Astana International Financial Center (‘AIFC’) Law.

Should a Candidate Company decide to withdraw from the Program at a point where certain costs have already been incurred but a Candidate Company has not completed its preparation for the first financing round, then Astana International Exchange reserves the right to ask for an immediate reimbursement of the costs incurred to date.

The successful Candidate Company who has completed the first round of financing will be required to repay 50% of the costs incurred by AIX upon completion of the first financing round.
The remaining 50% of the outstanding balance due will have to be repaid to Astana International Exchange within 24 months from the date of the first financing round completion.
We do believe this Program will contribute significantly towards the development of junior mining sector in Kazakhstan.


PRESS THE BUTTON TO FILL OUT SHORT FORM QUESTIONNAIRE.

PLEASE FEEL FREE TO CONTACT US +7 747 356-5146 OR E-MAIL US: [email protected]


Aix

AIX’s mission is to develop the public equity and debt capital markets in Kazakhstan and Central Asian region.
https://www.aix.kz/

Stay connected!

If you have any questions contact us and our managers will answer on them.

[email protected]