KazakhGold Group PLC said Friday its core shareholders the Assaubayev family had sold 5.5 million shares in the Company in the form of Global Depositary Receipts to portfolio investors at $21 a GDR.

The sale represents approximately 11.5% of the issued share capital of the Company. As such, the company's free float has risen to around 39%, while the holding of Gold Lion Ltd., the Assaubayev family's holding company, has fallen to 60%.

ING acted as sole bookrunner in the transaction. Mirabaud acted as selling agent.

The price was a 10.6% discount to Wednesday's market close of $23.50/GDR. The GDRs had fallen 7.1% to $22.00 Thursday in reaction to the first news of the sale.

Kanat Shaikhanovich Assaubayev, President of KazakhGold, said: "The proceeds will be used to make passive portfolio investments in Kazakhstan and internationally, and the family will not invest in any company competing with the Company."

Assaubayev said the family remains committed to retaining its majority shareholding and its full-time executive involvement in KazakhGold."