KazakhGold starts consent solicitation for 9 3/8% notes

By Jennifer Chiou

New York, Dec. 6 - KazakhGold Group Ltd. announced the start of a consent solicitation for its $200 million of 9 3/8% notes due 2013.

The solicitation deadline is noon ET on Dec. 17 and a noteholders' meeting is scheduled for noon ET on Dec. 19.

KazakhGold is seeking to modify the terms of the notes in order to allow the company to raise subordinated hybrid capital to accelerate production from existing undeveloped mine assets.

The company said it will pay a consent fee of $10.00 per $1,000 principal amount.

On Oct. 26, 2006, the company sold an upsized offering of $200 million of the seven-year senior fixed-rate notes.

The tabulation agent is Bank of New York (44 (0) 20 7964 4958 or eventsadmin@bankofny.com). The solicitation agent is HSBC Bank plc (44 (0) 20 7991 5880 or kazakhgold-consent@hsbcib.com).

Stepnogorsk, Kazahkstan-based KazakhGold is the holding company of gold miner Kazakhaltyn.

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