Orsu Metals Corporation (TSX-V: OSU) (“Orsu” or the “Company”) closed the purchase of the initial 30% interest in Sibzoloto Investments Limited (“Sibzoloto”), the indirect holder of the Sergeevskoe gold project in Russia on May 18, 2017.
Pursuant to the share purchase agreement, Orsu and the four sellers (the “Sellers”) of Sibzoloto had agreed that if the sale of Karchiga completed prior to September 30, 2017 for proceeds of not less than US$7,750,000, then the Sellers would have sold and Orsu would have purchased the remaining 700 (70%) shares of Sibzoloto for par value consideration of €700 and US$420,000 cash. In the event the sale of Karchiga did not close before September 30, 2017 for the expected amount then Orsu and the Sellers agreed to negotiate the terms an amendment at that time.
Given the sale of Karchiga completed on October 11, 2017, for proceeds of US$5,900,000, the Company and the Sellers have agreed to amended terms. Subject to the acceptance by the TSX Venture Exchange, and completion of definitive agreements, on closing the Sellers will transfer 600 of their 700 shares to Orsu for €600 and US$420,000 cash and Orsu will grant the Sellers a net smelter return royalty of 0.75% on the Sergeevskoe project, to be capped at US$7,500,000 at which point it will expire.
Orsu will carry the Sellers 10% interest until completion of a definitive feasibility study on the Sergeevskoe project, at which point the 10% interest will become a participating interest subject to dilution.
Sergey V. Kurzin, the Executive Chairman of Orsu commented: “I am very pleased with the spirit of co-operation and confidence displayed by the Sellers in the Sergeevskoe project demonstrated during these negotiations that will result in Orsu owning 90% of this promising project. Orsu has been actively exploring the project since November 2016, and expects to provide an update on results in the coming weeks.”
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
For further information, please contact:
Doris Meyer, Corporate Secretary, Orsu Metals Corporation
Tel: +1-604-536-2711 ext 6