‘Industrial Investors’ Russian Group Got Control Over Agarak Copper-

‘INDUSTRIAL INVESTORS’ RUSSIAN GROUP GOT CONTROL OVER AGARAK COPPER-MOLYBDENUM INTEGRATED PLANT IN SOUTH OF ARMENIA

ArmInfo Agency, Armenia
Oct 6 2007

ArmInfo. "Madneuli" JSC, a subsidiary of the "Industrial Investors"
Russian financial-industrial group (FIG) has got control over
the Agarak Copper-Molybdenum integrated plant (CMIP) in South of
Armenia, which belonged to the Comsup Commodities American Company,
a government-close source told ArmInfo.

The Agarak deposit is rich with copper, the average content of which in
concentrate makes up 26,2%. In 2006, the Agarak CMIP mined about 2,4
mln tons of ore. In May, 2004, the Comsup Commodities acquired 100%
of shares of the "Agarak Copper-Molybdenum Integrated Plant" CJSC at
$600,000 and invested over $20 mln in the enterprise’s development. To
recall, the "Industrial Investors" group has recently outbid 82,4%
of shares of the Starlight Gold Company, the capital asset of which
is the "Ararat Gold Recovery Company". The transaction is closed and
the total sum of sale of the block of stocks made up $86 mln. AGRC
develops the Sotk gold deposit in Armenia, the reserves of which are
assessed of 80 tons (2,6 mln ounces).

The source noted that specialists of the "Industrial Investors"
are in Armenia and deal with the project of recovery of ore-mining
from Sotk and upgrading of the mining-and-processing integrated
works. The "Industrial Investors" Russian FIG already possesses a
right for exploitation of a number of average deposits in Armenia and
is negotiating on acquisition of big industrial enterprises. Visit of
President and the main owner of the group Sergey Generalov to Armenia
is expected in the near future, the source notes.

To note, the "Madneuli" JSC is one of the biggest extracting companies
in Georgia. It has a license for exploitation of the Madneuli deposit
located in the south of Georgia at 80 km from Tbilisi. The total ore
reserves make up 60 mln tons. The ore mining volume makes up over 2 mln
tons a year and the volume of the gold-copper concentrate production
makes up 60,000 tons. "Quartzite" is a subsidiary of the "Madneuli"
JSC, which carries out processing of gold- containing spoil-dumps of
its deposit by a heap-leach method. The annual volume of production
makes up over 30,000 ounces of gold-silver bullions.