Sep 22 2014
Orsu Metals Corporation, the dual listed London-based base and precious metals exploration and development company, today announces that it has entered into a new conditional exclusivity agreement with David-Invest LLP, a Kyrgyz registered company, and a related company, David Way Limited, a Hong Kong registered company after the receipt of a non-refundable deposit of US$100,000 from the Potential Buyers with a view to the potential sale of its Akdjol and Tokhtazan gold exploration licences in Kyrgyzstan.
The key terms of the Akdjol-Tokhtazan Agreement are:
- As a result of Orsu receiving the Deposit, the Potential Buyers have been granted an exclusive right to purchase the Akdjol-Tokhtazan Project until February 4, 2015 (the "Exclusivity Period") conditional upon the Potential Buyers making four further non-refundable deposit payments in the amount of US$100,000 on or before each of October 4, November 4, December 4, 2014 and January 4, 2015. The Akdjol-Tokhtazan Agreement automatically expires in the event of non-payment of any of the Additional Deposits by the specified dates;
- the Potential Buyers will fund the exploration programme for the Akdjol-Tokhtazan Project (which are due to expire on December 31, 2015) on a non-refundable basis for the Exclusivity Period;
- the Potential Buyers have the right to terminate the Akdjol-Tokhtazan Agreement at any time, and Orsu has the right to terminate the New Exclusivity Agreement in the event of non-fulfilment of the obligation to fund the exploration programme; and
- the Potential Buyers have the option to purchase the Akdjol-Tokhtazan Project at any time on or before the expiry of the Exclusivity Period for a consideration of US$4.5 million (the total amount of which is unchanged from the previous exclusivity agreements with the Potential Buyers). The Deposit and any Additional Deposits received in accordance with the Akdjol-Tokhtazan Agreement, together with the previous non-refundable deposit of US$300,000 received in April 2014, will be applied against the consideration in the event of any sale.
Other than as described above, there have been no significant changes to the terms of the previous exclusivity agreements signed in 2012, 2013 and 2014.
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/