Up Energy Development Group (HKG:0307) said that it has entered into a memorandum of understanding for the proposed acquisition of 52% equity interest in limited liability company Kamarob from Kaisun Energy Group (HKG:8203)at a consideration of HK$394.649 million.

Half of the consideration, being HK$197.324 million, will be paid in cash and the other half of the consideration will be satisfied by the issue and allotment of consideration shares to Kaisun by Up Energy.

Kamarob is the license holding company of the Kafta Hona Deposit in Tajikistan.

The proposed acquisition will be subject to certain conditions precedent being fulfilled, performed or waived on or prior to 31 December 2013.

Under the MOU, Up Energy is granted an exclusivity right by Kaisun to negotiate the detailed terms and conditions of the proposed acquisition for a period of 60 days from the date of the MOU.