The company was originally committed to make payments to the AGF Phase 2 Project Development Fund in 2008. The fund is payable to the Uzbekistan government for access to mineral rights.

The company assumed a US$9.87 million liability to the fund and this has now been increased to US$10.84 million, after the Economic Court ruled in favour of the Ministry of Finance of Uzbekistan, confirming the figure carried by the ministry regarding the size of the liability.

Gold production restarted at Amantaytau Goldfields (AGF), a 50:50 joint venture with the Uzbekistan government, in May 2010. Already the company has shown a sharp improvement in it financials as a result of the restart.

Oxus is in ongoing discussions with the Uzbek Government to determine new payment terms to the fund. It has recently held talks with senior representatives of the Ministry of Finance. It said the meetings were friendly and constructive.

Oxus has committed to pay the fund as soon as practicable.

They also discussed the further development of AGF and the potential for increased cooperation between the Company and the Uzbek Government, Oxus said.

Oxus revealed its improving financial position in a positive quarterly report last month.

In the third quarter AGF made a net profit of US$1.80 million, almost 40% more than the previous two quarters combined.

It sold 1,563 ounces of gold and 206,843 oz of silver, generating gross revenue of US$6.05 million, compared with US$8.23 million in the first half of the year.

Also AGF mined more ore in the quarter than in the preceding six-month period, with 186,295 tonnes of ore mined (H1: 98,800t). It stacked 106,863t of ore compared to 147,176t in the preceding two quarters.

In the third quarter AGF produced 1,427 oz of gold (H1: 2,579 oz) and 243,280 oz of silver (H1: 301,949 oz).

It reported cash operating costs of US$383 per gold equivalent ounce and total production costs of US$599 per gold equivalent ounce.

Overall for the entire nine month period AGF has now produced 4,006 oz of gold and 545,229 oz of silver. It has sold 3,925 oz of gold and 521,145 oz of silver, to generate US$14.28 million in revenue, US$6.48 million gross profit and US$2.85 million net profit.