KazakhGold Confirm Offer Aproach by Russian Polyus

Kazakh gold miner KasakhGold said on Monday it had received a possible cash and shares offer for 50.1% of the company from Russia's top gold producer Polyus Gold.

The part offer is for $7.95 in cash and 0.298 Polyus Gold shares for every Kazakhgold share, valuing each share at $14.73 and the company at just under $750m.

The deal has already been agreed by Gold Lion Holdings - a 41% KazakhGold shareholder.

KazakhGold shares closed on Friday at $12 a share after news Polyus had approached KazakhGold sent the stock soaring over 14 percent on the day. The shares had more than halved in the year to date.

The company is Kazakhstan's largest gold producer, mining 232,000 ounces in 2007. It raised $53m earlier this year to finance the acquisition of further mining assets.

Reporting by John Bowker, editing by Quentin Bryar, Reuters .