Orsu Metals Corporation has received the deposit of $100,000 due from Karasat Trading FZE under the sale and purchase agreement for the conditional sale of the Karchiga Copper Project in Kazakhstan.
In April Orsu entered into an agreement with Karasat Trading, a company registered in the United Arab Emirates with other mining interests in Kazakhstan, to sell its 94.75% interest in GRK MLD LLP, which owns the Karchiga project for an initial US$7.75 million, plus deferred consideration of up to US$2 million.
In addition, Orsu conditionally agreed to sell its effective 51% interest in its Kogodai project in Kazakhstan to the same party for $10,000.
At the time Orsu’s executive chairman Dr Sergey Kurzin said, “Although management believe in the long term prospects for copper, it cannot ignore the current economic reality of a sustained period of depressed commodity prices and of negative investor sentiment towards the resources sector generally and junior resource companies in particular, which have affected the company’s ability to finance the Karchiga project both to date and in the foreseeable future.
“The sale of Karchiga, if completed, will provide the company with a platform to identify new potential opportunities to seek to create value for shareholders.”
In view of the current economic situation and the depressed levels of commodity prices, Orsu’s management has also considered the relative merits of maintaining the listing of its shares on both AIM and TSX, and has announced the cancellation of the admission of its shares to trading on AIM effective from May 11, 2016.