Completion of the Sale of Talas to Gold Fields
Wednesday 25 July 2012
LONDON (Press release) – Orsu Metals Corporation, the London-based dual listed (TSX: OSU; AIM: OSU) base and precious metals exploration and development company, announces it has completed the sale of its 40% interest in the Talas gold-copper-molybdenum joint venture project in the Kyrgyz Republic to a wholly-owned subsidiary of Gold Fields for US $10 million, the agreement for which was announced on 17 July 2012.
- Orsu was formed on 19 June 2008 upon the Company’s completion of the acquisition of Lero Gold Corp., pursuant to which the Company accrued additional interests in exploration projects located in Kyrgyzstan and Kazakhstan. Orsu is a dual listed London-based precious and base metal exploration and development company which, through its subsidiaries, is exploring advanced copper-gold deposits in the Tien Shan gold belt in the Kyrgyz Republic, one of the largest and most prolific gold belts in the world and the Rudny Altai copper belt in the Republic of Kazakhstan. Orsu is registered in the British Virgin Islands.
The Gold Fields group currently holds 1,134,919 common shares in the capital of Orsu representing 0.72% of the Company’s issued share capital. Upon completion of the Subscription, Gold Fields will own 26,134,919 common shares, representing a 14.31% shareholding in the enlarged issued and outstanding shares on an undiluted basis, and 12,500,000 common share purchase warrants, which if and when any such warrants were exercised would result in a shareholding of 18.32% calculated on a fully diluted basis.
In addition, another wholly-owned subsidiary of Gold Fields has advanced into escrow the gross proceeds of CAD $10 million cash in connection with its subscription for 25 million units of the Company at a price of CAD $0.40 per unit (the Subscription), as announced on 17 July 2012. Completion of the Subscription remains conditional upon the Company obtaining formal waiver of the Kyrgyz Government’s pre-emptive right and requirement for consent for the issuance or placement of new shares in the Company pursuant to the Subscription. The gross proceeds of the Subscription will remain in escrow pending the satisfaction or waiver of these conditions.
Gold Fields is one of the world’s largest unhedged producers of gold with attributable, annualized production from eight operating mines in South Africa, Ghana, Australia and Peru. Gold Fields also has an extensive and diverse growth pipeline with both greenfield and near mine exploration projects at various stages of development. Gold Fields has a primary listing on the JSE Limited in South Africa and secondary listings on the New York Stock Exchange, NASDAQ Dubai Limited, Euronext and the Swiss Exchange.