Orsu Metals Corporation has received confirmation from the relevant Kyrgyz authorities that the licences for its Akdjol-Tokhtazan project have been extended and will now expire on January 1, 2020.
The previous extension granted by Kyrgyz authorities was for three years and ended on December 31, 2015
Orsu, a base and precious metals exploration and development company, is based in London and is listed on AIM and the TSX.
Earlier in January Orsu advised that the potential buyers of the Akdjol-Tokhtazan project had not exercised their option to purchase the project before the deadline of December 31.
Consequently, the agreement has lapsed and ongoing discussions between the company and the potential buyers are continuing on a non-exclusive basis.
On April 7, 2015, the company signed an exclusivity agreement with David-Invest LLP, a Kyrgyz registered company, and a related company, David Way Limited, a Hong Kong registered company, relating to the sale.
In parallel with the ongoing discussions, Orsu will consider the available options for the project and will re-appraise the classification and carrying value of the project as at December 31, 2015.
Orsu has retained the $400,000 non-refundable deposit received from the potential buyers and will recognise this as income for the year ended December 31, 2015.