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