Orsu Metals Corporation ("Orsu" or the "Company"), the dual listed London-based base and precious metals exploration and development company today announces that it has entered into a new exclusivity agreement ("New Exclusivity Agreement") with David-Invest LLP ("David Invest"), a Kyrgyz registered company, with a view to the potential sale of its Akdjol-Tokhtazan gold exploration licences in Kyrgyzstan ("Licences") through either the sale of its wholly owned subsidiary, Tournon Finance Limited ("Tournon"), or Tournon's wholly owned subsidiary, Oriel In Kyrgyzstan LLC ("OIK"), respectively the indirect and direct holders of the Licences.
The Company's interest in the Licences was classified as held for sale in 2011 following the Board's decision to actively market the asset and focus on developing its Karchiga Project, the Company's principal copper asset in north-eastern Kazakhstan. The previous exclusivity agreement with David-Invest (see the Company's press release dated 1 November 2012) expired on 1 September 2013.
The key terms of the New Exclusivity Agreement are as follows:
- David Invest has been granted a further exclusive right to purchase Tournon or OIK until 31 December 2013, (the "Exclusivity Period")
- in return for being granted exclusivity David-Invest will fund the exploration programme for the Licences (which are due to expire on 31 December 2015) on a non-refundable basis for the remainder of 2013; and
- David-Invest has the option to purchase the entire share capital of Tournon or OIK at any time on or before the expiry of the Exclusivity Period for a consideration of US$4.5 million.
Other than as described above, there have been no significant changes to the terms of the original exclusivity agreement signed in 2012.
The carrying value of the Licences as at 30 June 2013 was US$4.4 million, and the losses attributable to the Licences for the year ended 31 December 2012 were US$1.7 million.
The Company will apply any proceeds from a sale to working capital and identification of other early stage exploration opportunities consistent with the Company's strategy.
Source: http://www.orsumetals.com