SALE OF EQUITY INVESTMENT IN THE TALAS PROJECT
The net gain on the Sale of the Talas Project as at December 31, 2012 is shown below:
July 13, 2012 $000Cash proceeds received 10,000Fair value of Subscription proceeds held in escrow 7,638 ---------Total sale consideration 17,638Less:Equity investment in Talas Project as at January 1, 2012 10,111Funding provided by the Company during the period, net of recovery of $240,089 288Less: Company's 40% share of operating losses to date of disposal (783) ----------Equity investment in Talas Project disposed of (9,616)Legal and professional fees (202) ---------Gain before tax on disposal of Talas Project as at July 13, 2012 7,820 --------- ---------Capital gains taxable payable on disposal of Talas Project (195) ---------Net gain on disposal of Talas Project as at July 13, 2012 7,625 --------- ---------
LIQUIDITY AND CAPITAL RESOURCES
As at December 31, 2012 the Company's main source of liquidity was unrestricted cash and cash equivalents of $9.8 million, compared with $10.3 million as at December 31, 2011.
The Company measures its consolidated working capital as comprising free cash, accounts receivable, prepayments and other receivables, less accounts payable and accrued liabilities. As at December 31, 2012, the Company's consolidated working capital was $9.3 million (compared with a consolidated working capital of $10.6 million as at December 31, 2011).
The Company's working capital needs as at December 31, 2012 included the maintenance of funding for its exploration and development activities, including its expenditure obligations under the Balkhash Agreement, the acquisition of new mineral exploration properties, its corporate and administrative expenditures requirements and potential contributions towards project finance, if and when arranged, in relation to the Karchiga Project, as deemed appropriate. The Company expects to fund its working capital requirements for 2013, other than as set out below, and be able to contribute towards the pursuit of future growth opportunities (which may include acquiring one or more additional assets), if and when such opportunities arise, from its unrestricted cash of $9.8 million as at December 31, 2012 and potential net proceeds, if any, from the sale of the Akdjol-Tokhtazan Project. In the Company's view, the consolidated working capital as at December 31, 2012 is sufficient to satisfy its working capital needs, other than as described below, for at least the next twelve months.