We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| TSXV:WAI | TSX Venture | Common Stock |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0 | - |
Hot Features
Premium
Orsu Metals Corporation ("Orsu" or the "Company" or the "Group"), the dual
listed (TSX:OSU)(AIM:OSU) London-based base and precious metals exploration and
development company today reports its unaudited results for the period ended
September 30, 2012. A full Management's Discussion and Analysis of the results
for the period ended September 30, 2012 ("MD&A") and Consolidated Financial
Statements ("Financials") will soon be available on the Company's profile on
SEDAR (www.sedar.com) or on the Company's website (www.orsumetals.com). Copies
of the MD&A and Financials can be also be obtained upon request to the Company
Secretary.
The Financials for the period ended September 30, 2012 have been prepared in
accordance with International Financial Reporting Standards ("IFRS") and their
applicable International Accounting Standards (or "IAS").
All amounts are reported in United States Dollars unless otherwise indicated.
Canadian Dollars are referred to herein as CAD$ and British Pounds Sterling are
referred to as GBP.
The following information has been extracted from the MD&A and the Financials.
Reference should be made to the complete text of the MD&A and the Financials.
BUSINESS REVIEW FROM JULY 1, 2012
Since the start of the third quarter the Company made significant progress in
two key areas in relation to its Karchiga Project; its efforts to secure finance
for the construction of a mine and processing facility at the Karchinga Project
and obtaining the necessary approvals required for the construction of a mine
and processing facility. At the same time, in order to raise working capital to
fund future exploration activities the Company entered into an agreement to
potentially sell its Akdjol-Tokhtazan Project in Kyrgyzstan. In relation to
aforementioned objectives the Company achieved the following significant
milestones:
-- The Company completed the sale of its 40% interest in the gold-copper-
molybdenum project in Kyrgyzstan (the "Talas Project") to a wholly owned
subsidiary of Gold Fields Limited ("Gold Fields") for cash consideration
of $10 million (the "Sale") and additionally for the subscription of 25
million units of the Company (each a "Unit") at a price of CAD$0.40 per
Unit for gross proceeds of CAD$10 million (the "Subscription"), with
each Unit consisting of one common share (a "Common Share") and one half
of one common share purchase warrant (each whole warrant, a "Warrant").
Completion of the Subscription is conditional on the Company obtaining
formal waiver of the Kazakh Government's pre-emptive right and
requirement for consent for the issuance of Common Shares pursuant to
the Subscription (the "Kazakh Formal Waiver") which is expected in H2
2012. The Company intends to apply a substantial proportion of the Sale
and Subscription proceeds towards the construction and development of
the mine and related processing facilities for the Karchiga Project.
-- The Company appointed Barclays Bank plc ("Barclays") and UniCredit Bank
Austria AG ("UniCredit") (collectively the "Mandated Lead Arrangers") to
use commercially reasonable efforts to secure a project debt finance
facility of up to $90 million to finance the Karchiga Project, subject
to commercially acceptable terms for the facility being agreed and the
Mandated Lead Arrangers obtaining all necessary internal approvals. The
Company also announced that it is continuing discussions with a number
of potential debt providers to participate in the debt financing
alongside the Mandated Lead Arrangers.
-- The Company announced that it had received from the relevant Kazakh
authorities an approval (the "Approval") for the Karchiga technical
project ("Karchiga Technical Project") relating to the development of a
mining and processing complex at the Karchiga Project. The Approval was
granted by the Central Commission for Exploration and Mining of Mineral
Resources at the Ministry of Industry and New Technologies of Kazakhstan
(the "MINT") and is the principal document which confirms the compliance
of the Karchiga Technical Project with technical, economic and
environmental standards of Kazakhstan. The grant of the Approval allows
for an amendment to the Karchiga Project Contract (as defined below) to
permit the Company to commence construction and mining at the Karchiga
Project.
-- The Company announced that it had entered into an exclusivity agreement
with David-Invest LLP ("David Invest"), a Kyrgyz registered company, to
fund exploration work on a non-refundable basis for a period up to
September 1, 2013 (the "Exclusivity Period"), subject to the Company
successfully renewing the exploration licenses expiring on December 31,
2012, in return for which the Company would grant David Invest the
exclusive right during the Exclusivity Period to acquire the Akdjol-
Tokhtazan Project for consideration of $4.5 million through the
acquisition of its wholly owned subsidiary, Tournon Finance Limited,
("Tournon"), the 100% owner of Oriel In Kyrgyzstan LLC ("OiK LLC") which
is the holder of the gold exploration licenses for the Akdjol-Tokhtazan
Project (the "Exclusivity Agreement") (see "Operational Review - Akdjol-
Tokhtazan Project, Kyrgyzstan").
2012 THIRD QUARTER HIGHLIGHTS
-- July 2012 - as described above, the Company announced that it had agreed
to the Sale of its 40% interest in the Talas Project for a cash
consideration of $10 million and additionally Gold Fields had agreed to
the Subscription of 25 million Units of the Company at a price of
CAD$0.40 per Unit for gross proceeds of CAD$10 million, with each Unit
consisting of a Common Share and one half of one Warrant.
-- July 2012 - the Company announced the completion of the Sale and receipt
of $10 million cash consideration. In addition, the Gold Fields Group
had advanced into escrow the gross proceeds of the Subscription of
CAD$10 million cash. Completion of the Subscription remains conditional
upon the Company obtaining the Kazakh Formal Waiver. The gross proceeds
of the Subscription will remain in escrow pending the satisfaction or
waiver of these conditions. Upon completion of the Subscription, the
Gold Fields Group will own 26,134,919 Common Shares and 12,500,000
Warrants. All shares issued pursuant to the Subscription or any
subsequent exercise of the Warrants within 4 months of the Unit issuance
date will be subject to a hold restriction for four months after the
date the Units are issued.
-- July 2012 - the Company announced that it appointed the Mandated Lead
Arrangers to use commercially reasonable efforts to secure a project
debt finance facility of up to $90 million to finance the Karchiga
Project, subject to commercially acceptable terms for the facility being
agreed and the Mandated Lead Arrangers obtaining all necessary internal
approvals. The Company also announced that it is continuing discussions
with a number of potential debt providers to participate in the debt
financing alongside the Mandated Lead Arrangers.
-- August 2012 - the Company announced that it had received the Approval
for the Karchiga Technical Project relating to the development of a
mining and processing complex at the Karchiga Project. The Approval was
granted by the Central Commission for Exploration and Mining of Mineral
Resources at the MINT and is the principal document which confirms the
compliance of the Karchiga Technical Project with technical, economic
and environmental standards of Kazakhstan. The grant of the Approval
allows for an amendment to its existing exploration and production
contract to permit the Company to commence construction and mining at
the Karchiga Project.
POST QUARTER HIGHLIGHTS
-- November 2012 - As described above the Company announced that it had
entered into the Exclusivity Agreement with David Invest to fund
exploration work on a non-refundable basis during an Exclusivity Period,
subject to the Company successfully renewing the exploration licenses
expiring on December 31, 2012, in return for which the Company would
grant David Invest the exclusive right during the Exclusivity Period to
acquire the Akdjol-Tokhtazan Project for a consideration of $4.5
million.
-- November 2012 - the Company announced that it had entered into an
exclusivity agreement (the "Balkhash Agreement") with Asem Tas-N LLC
("Asem Tas") to jointly explore Asem Tas' licence area of approximately
6,000km2 (referred to herein as the "East Balkhash 2" licence area) in
Kazakhstan, which is host to a 30km long Dzharyk-Taisogan cluster of
copper-polymetallic occurrences (the "Balkhash Project"). Asem Tas is a
privately owned Kazakh registered company and the owner of the subsoil
use contract for the Balkhash Project. Under the terms of the Balkhash
Agreement, the Company will fund exploration work for the Balkhash
Project for 175 days ending in April 2013 (subject to extension by
mutual agreement) in an approximate total amount of $0.9 million (the
"Initial Working Programme"). In return, the Company has been granted
the exclusive right to participate in the Balkhash Project during such
time. The Balkhash Agreement provides that, subject to the completion of
satisfactory due diligence by Orsu, Asem Tas will apply to transfer the
licence for the East Balkhash 2 area to a newly formed Kazakh legal
entity jointly owned by Orsu and Asem Tas (the "Balkhash Joint Venture
Company"), with Orsu holding an effective 55% interest. A transfer of
the exploration licence to the Balkhash Joint Venture Company will be
conditional upon obtaining a formal waiver of the Kazakhstan
Government's pre-emptive right. Where the approval of the relevant
authorities for the transfer of the exploration licence is not received
due to a breach by Asem Tas, or the Kazakh Government exercises its pre-
emptive right to acquire the licence during the transfer process, Asem
Tas is required to refund Orsu for its expenditures in connection with
the Initial Working Programme. Further to the terms of the Balkhash
Agreement, upon the successful transfer of the East Balkhash 2 licence
to the Balkhash Joint Venture Company, Orsu will pay up to $1.5 million
to Asem Tas to compensate Asem Tas for historical exploration costs
incurred prior to 2012 (excluding any costs funded by Orsu). In
addition, Orsu has agreed to pay: (a) $20 per tonne of economically
extractable copper equivalent, up to a maximum of $10 million (less any
amount paid by Orsu to Asem Tas to compensate Asem Tas for historical
exploration costs), on completion of a positive preliminary economic
assessment study; and (b) $20 per additional tonne of economically
extractable copper equivalent, up to a maximum of $15 million (less any
amounts paid by Orsu to Asem Tas to compensate Asem Tas for historical
exploration costs and/ or pursuant to (a) above) on completion of a
positive definitive feasibility study. In addition, under the terms of
the Balkhash Agreement, Orsu will be responsible for funding all
exploration work for the Balkhash Project up to and including the
successful completion of a positive feasibility study. Under the terms
of the Balkhash Agreement, Orsu will have the right to buy-out all or
part of the interest of Asem Tas in the Balkhash Joint Venture Company,
for cash or shares, at a price determined by an independent expert.
OPERATIONAL REVIEW
The Company's principal and most advanced exploration project is the property
comprising a 47.3km2 licence area in eastern Kazakhstan containing the Karchiga
volcanogenic massive sulphide ("VMS") deposit (the "Karchiga Project"), which is
part of the Rudny Altai polymetallic belt. In the first quarter of 2012, the
Company filed the results of the definitive feasibility study (or the "Karchiga
DFS") for the Karchiga Project which estimated an initial capital expenditure
requirement of $115 million. Since then the Company has set out to secure
finance, primarily in the form of secured debt but also from other sources, for
the construction of a mine and processing facility at the Karchiga Project.
In relation to the Karchiga project in July 2012 the Company obtained approval
for the Karchiga Technical Project and local Feasibility Study from the Kazakh
authorities which will allow the Company to proceed with the Karchiga Project
through to construction phase. In addition the Company is currently seeking to
secure financing to fund the construction, which the Company estimates to secure
in the fourth quarter of 2012, so that the Company can enter into contracts to
place advanced orders for mining equipment and in order to commence construction
at the Karchiga Project in April 2013 (see "Risk and uncertainties" section of
the Company's MD&A). In order to secure finance for the Karchiga Project the
Company appointed the Mandated Lead Arrangers to secure debt finance and also
intends to use a proportion of the proceeds from the Sale and, if completed, the
Subscription towards this.
Until the completion of the Sale on July 23, 2012 to Gold Fields the Company's
other principal exploration asset was its 40% interest in a property in
northwest Kyrgyzstan, which is comprised of four licence areas within the Tien
Shan gold belt of north western Kyrgyzstan: the Taldybulak, Barkol, Korgontash
and Kentash licences (collectively, the "Talas Project").
The Company's other exploration project is located approximately 100km to the
south west of the Talas Project and is the Akdjol-Tokhtazan licence area
comprising the Akdjol and Tokhtazan licences (the "Akdjol-Tokhtazan Project").
In the fourth quarter of 2011 the Company decided the Akdjol-Tokhtazan Project
an asset which was available for sale and in November 2012 announced the
potential sale to David Invest (see "Akdjol-Tokhtazan Project, Kyrgyzstan -
Potential disposal of the Akdjol-Tokhtazan Project").
KARCHIGA COPPER PROJECT, KAZAKHSTAN
Karchiga DFS
In February 2012, SRK Consulting (UK) Limited ("SRK") completed the Karchiga DFS
and, in connection therewith, completed the Karchiga DFS Report dated March 28,
2012. The complete Karchiga DFS Report entitled "Karchiga Feasibility Study,
National Instrument 43-101 ("NI 43-101") "NI 43-101 Technical Report", dated
March 28, 2012 was prepared by Michael Beare, Dr Michael Armitage and Ms Tracey
Laight of SRK (each of whom is a "qualified person" within the meaning of NI
43-101 and independent of Orsu) can be viewed under the Company's profile on
SEDAR at www.sedar.com.
The Company commenced the Karchiga DFS in September 2010; the study was
completed in February 2012, and the Company currently estimates to start
construction in April 2013. During the process of completing and fulfilling the
requirements of the Karchiga DFS the Company undertook associated exploration
and test work programmes which include:
-- In-fill resource drilling program 2010 (full details can be viewed in
the Company's MD&A);
-- Metallurgical test work April 2011 (full details can be viewed in the
Company's MD&A);
-- SRK May 2011 Pit-Constrained Mineral Resource Estimates (full details
can be viewed in the Company's MD&A);
-- SRK December 2011 Pit-Constrained Mineral Resource Estimates (full
details can be viewed in the Company's MD&A); and
-- Karchiga DFS and the 2012 Mineral Reserve Estimates (as described
below).
Table 1 below shows the results of the 2012 Mineral Reserve Estimates:
Table 1. Probable Mineral Reserves Estimates as of February 18, 2012
----------------------------------------------------------------------------
Ore Tonnes Cu Metal Cu Metal Au Metal
Orebody Type (Mt) Cu % Au g/t (kt) (Mlb) (Koz)
----------------------------------------------------------------------------
Central HL 1.5 1.43 0.06 21.4 47.2 3.0
----------------------------------------------------------------------------
Central FL 3.8 1.78 0.12 68.2 150.2 15.2
----------------------------------------------------------------------------
North East FL 4.7 1.64 0.18 77.0 169.8 27.4
----------------------------------------------------------------------------
Total 10.0 1.67 0.14 166.6 367.2 45.6
----------------------------------------------------------------------------
All figures are on a 100% ownership basis
Pit designs and the final NI 43-101 mineral reserve estimates dated February 18,
2012 were completed using two types of software; Whittle 4X optimisation
software was used to generate optimal pit shells which were designed in detail
using Vulcan software.
Key optimisation parameters are presented in Table 2 below.
Table 2. Whittle Input Parameters
----------------------------------------------------------------------------
OVERALL SLOPE ANGLES PARAMETER
CENTRAL PIT
HANGING WALL 49 degrees
FOOTWALL 47 degrees
NORTH-EASTERN PIT
HANGING WALL 51 degrees
FOOTWALL 45 degrees
NORTHERN WALL 47 degrees
MINING & PROCESSING
MINING RECOVERY 95%
MINING DILUTION 5%
FRESH CU PROCESSING RECOVERY 94.0%
OXIDE CU PROCESSING RECOVERY 55.0%
COSTS
MINING COST
ORE 1.80 $/t
OXIDE 1.30 $/t
WASTE 1.60 $/t
FRESH PROCESSING COST 9.00 $/t ore
OXIDE PROCESSING COST 22.57 $/t ore
GENERAL & ADMINISTRATIVE COST 5.00 $/t ore
ROYALTY 5.7% of RoM Metal Value (above 0.7% Cu
head grade)
PRICE
CU SELLING PRICE 6,600 $/t Cu
NSR 83% (For Fresh Rock only)
----------------------------------------------------------------------------
Capital Expenditure
The estimated total project capital expenditure ("CAPEX") over the mine life of
$147 million, including the solvent extraction with electro winning ("SXEW")
plant to treat the oxide ores, is made up as follows:
-- $21.5 million for mining equipment
-- $40.1 million for copper in concentrate processing plant and equipment
-- $26.3 million for SXEW plant
-- $21.7 million for mine site facilities and infrastructure
-- $26.3 million for sustaining capital & closure costs
-- $11.3 million for contingency
The estimated initial CAPEX is $115 million, which excludes the SXEW plant,
sustaining capital & closure costs but includes pre-production development
costs.
The initial CAPEX estimate is comparable to the initial capital cost estimate of
$100 million contained in the Karchiga Scoping Study. The Company estimates that
a 12 to 15 month period is sufficient for the construction of the processing
facilities and pre-production development at the Karchiga Project.
Mine Plan
The open pit mining schedule produced by SRK calculated a producing mine life of
11.5 years. The mining schedule envisages the mining of 10 Mt of sulphide and
oxide ore, and 124 Mt of waste with a stripping ratio of 1:12.4 over the mine
life, producing11.8 ktpa of 27.9% Cu concentrate and 2.8 ktpa of Cu cathode. The
average mining rate of the operation is anticipated to be 750kt per annum.
For the first 2.25 years of the mine life, the mining schedule includes open pit
mining of the Central sulphide ore body alone in order to maximise the sulphide
copper grade and hence sulphide copper recovery. The optimised mine schedule has
been developed to minimise the stripping ratio in the initial three years of the
mine life. In addition, the use of stockpiling has enabled the Company to
increase the processed ore grade. From Year 4 until Year 7, sulphide ore will be
mined from both the Central and North East open pits. From Year 8 until the end
of mine life in Year 12, mining will focus on the North East pit.
The average mining cost over the mine life is $1.7 per tonne of material moved.
Processing Plan and Economic Model
The plant is designed to process approximately 750,000 tonnes per annum of
sulphide ore. A conventional processing route was chosen using relatively fine
grinding and selective sulphide flotation to produce a 27.9% bulk concentrate.
As the Company aims to secure finance for the project in the fourth quarter of
2012, and the timing for the start of construction is dependent thereon to
commence in April 2013 it now estimates that first production is planned for
October 2014 through to final production in 2025.
Copper from the oxide ore will be extracted using SXEW process. The oxides will
be treated over a period of 4.5 years starting in 2019 at an annual production
rate of 360,000 tonnes and is expected to produce an average of 2.8kt (6.22Mlb)
of copper cathode per annum over that period. Production of cathode copper will
continue until 2023.
In order to reduce the initial capital expenditure, the SXEW plant construction
has been delayed until after the initial capital expenditure payback period
(which is anticipated to be 2.75 years). The plant has been designed to treat an
average of 30,000 tonnes of leachable oxide ore per month.
The results of the Karchiga DFS demonstrate that economically the best option is
to delay the SXEW construction until 2017, allowing the cost of construction to
be financed from the revenue generated by the sulphide ore treatment.
The project key performance indicators are shown in Table 3 below.
Table 3. Key Performance Indicators
----------------------------------------------------------------------------
Key
Performance
Parameter Units Indicator
----------------------------------------------------------------------------
Average annual mining rate Tonnes 750,000
----------------------------------------------------------------------------
Average mining cost $/t of ore 22.99
----------------------------------------------------------------------------
Annual processing rate (FL) Tonnes 750,000
----------------------------------------------------------------------------
Mine life (FL) Years 11.5
----------------------------------------------------------------------------
Processing cost (FL) $/t of ore 8.91
----------------------------------------------------------------------------
Metallurgical recovery (FL) % 93.4
----------------------------------------------------------------------------
Average annual copper production, over 11.5 years
(FL) '000 tonnes 11.82
----------------------------------------------------------------------------
Average annual copper production (FL) Mlb 26.1
----------------------------------------------------------------------------
Annual processing rate (HL) Tonnes 360,000
----------------------------------------------------------------------------
Mine life (HL) Years 4.5
----------------------------------------------------------------------------
Processing cost (HL) $/t of ore 18.7
----------------------------------------------------------------------------
Metallurgical recovery (HL) % 61.1
----------------------------------------------------------------------------
Average annual copper production, over 4.5 years
(HL) '000 tonnes 2.8
----------------------------------------------------------------------------
Average annual copper production (HL) Mlb 6.2
----------------------------------------------------------------------------
Cash operating cost over the mine life (pre tax) $/lb Cu 1.47
----------------------------------------------------------------------------
The mine is expected to produce a total of 149kt (328 Mlb) of payable copper,
with an average of 12,957t (28.57 Mlb) of copper production per annum.
The Karchiga Project site is located 10 km from the main road and a 110 kV
national power grid and is expected to be connected to the same as part of
construction. An adequate supply of water can be sourced from the River Kalzhir
as well as from aquifers in the immediate vicinity of the designed project
facilities.
The project key economic indicators are shown in Table 4 below.
Table 4. Key Economic Indicators
----------------------------------------------------------------------------
Key
Economic
Parameter Units Indicator
----------------------------------------------------------------------------
Total project CAPEX $m 147
----------------------------------------------------------------------------
Initial CAPEX $m 115
----------------------------------------------------------------------------
Total Net Smelter Revenue $m 971
----------------------------------------------------------------------------
Sulphide and Oxide Case @ $3.25/lb Cu:
- Post-Tax NPV7.5 $m 150
- Post-Tax IRR % 30
- Payback period Years 2.75
----------------------------------------------------------------------------
Sulphide and Oxide Case @ $3.00/lb Cu:
- Post-Tax NPV7.5 $m 113
- Post-Tax IRR % 25
- Payback period Years 3.0
----------------------------------------------------------------------------
All figures are on a 100% ownership basis
The figures for NPV, IRR and payback in Table 14 assume 100% equity financing
for the Karchiga Project and a discount rate of 7.55% was used to derive the
NPV. The ESIA for the Karchiga Project was successfully completed by Wardell
Armstrong International ("WAI") on January 31, 2012. In the normal course of
applying for the necessary construction permitting approvals and delays in the
timings thereof from of the Kazakh authorities, the Company now expects to
receive the necessary construction permitting approvals from the local Kazakh
authorities by the end of the fourth quarter of 2012 having obtained the
approval from the MINT in the third quarter of 2012. As at the date of this MD&A
the copper price (as quoted on the London Metal Exchange) was $3.46/lb, which if
used in the above scenarios may be expected to improve the economic results of
the Karchiga Project.
Karchiga DFS Expenditure
The Company originally estimated expenditure on the Karchiga DFS of $6.6
million, but due to increased resource drilling work covering the additional
oxide and sulphide drilling programme mentioned above, the Company now expects
to incur expenditure of $9.2 million, which it expects to fund from its
available cash. As at March 31, 2012, the Company had incurred cumulative
expenditure of $8.6 million relating to the Karchiga DFS since August 2010. The
work undertaken since April 2012 relates to the future construction of the mine
at the Karchiga Project with the start of construction expected to commence in
April 2013 subject to financing.
Other matters
Following the completion of the Karchiga DFS the Company began the process of
identifying companies and contractors to complete the detailed design work going
forward into the start of construction (expected in the April 2013). In addition
the Company continues to identify potential off-takers for the copper
concentrate in both the People's Republic of China ("China") and Kazakhstan. The
Karchiga Project is favourably located approximately 220 km south east of the
regional centre, Ust-Kamenogorsk, and approximately 40 km from the Chinese
border to the east. The nearest copper mining operation in China at the Ashele
VMS deposit, containing 1million tonnes of copper, is located approximately 85
km east-southeast from the Karchiga deposit.
TALAS COPPER-GOLD-MOLYBDENUM PROJECT, KYRGYZSTAN
The Sale
On July 23, 2012, the Company completed the Sale to the Gold Fields Group for
$10 million cash. The Company was also refunded its aggregate contributions of
$240,089 to the current Talas Project exploration programme. Following the
completion of the Sale, the Gold Fields Group now owns a 100% interest in the
Talas Project. In addition, the Company's joint venture with Gold Fields in
relation to the Talas Project terminated upon completion of the Sale.
In addition to acquiring Orsu's 40% interest in the Talas Project, the Gold
Fields Group also agreed to the Subscription by subscribing for 25 million Units
at a price of CAD$0.40 per Unit for gross proceeds of CAD$10 million. Each Unit
is to consist of one Common Share and one half of one Warrant. Each Warrant will
be exercisable for a period of three years from the date of issue to acquire one
Common Share at a price of CAD$0.50. The gross proceeds of CAD$10 million cash
are being held in escrow pending the Company's receipt of the Kazakh Formal
Waiver or Gold Fields waiver of such condition which is expected in H2 2012. The
Units will not be issued to the Gold Fields Group until such condition has been
satisfied or waived by the Gold Fields Group. Upon completion of the
Subscription, the Gold Fields Group will own 26,134,919 Common Shares and
12,500,000 Warrants. All shares issued pursuant to the Subscription or any
subsequent exercise of the Warrants (within 4 months of the Unit issuance date)
will be subject to a hold restriction for 4 months after the date the units are
issued.
AKDJOL-TOKHTAZAN PROJECT, KYRGYZSTAN
Potential disposal of the Akdjol-Tokhtazan Project
On November 1, 2012 the Company announced that it had entered into the
Exclusivity Agreement with David-Invest the key terms of which are:
-- David Invest has been granted the exclusive right to purchase Tournon
until 1 September 2013, subject to the renewal of the Licences which are
due to expire on 31 December 2012;
-- in return for being granted exclusivity David-Invest will fund the
exploration programme for the Akdjol and Tokhtazan licences on a non-
refundable basis for the remainder of 2012, and, if the licences are
renewed, during the remainder of the Exclusivity Period and,
-- David-Invest has the option to purchase the entire share capital of
Tournon at any time on or before the expiry of the Exclusivity Period
for consideration of $4.5 million.
FINANCIAL RESULTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012
For the three months ended September 30, 2012 the Company reported net income of
$3.8 million compared to net loss of $2.7 million for the three months ended
September 30, 2011.
In July 2012, the Company completed the Sale of the Talas Project to the Gold
Fields Group for total consideration of $10 million and the Gold Fields Group
entered into the agreement for the Subscription for which the Company measured
an initial fair value of $7.6 million, being the excess of the gross proceeds
from the Subscription, CAD$10 million over the fair value of the Common Shares
and Warrants, and as a result the Company recorded a net gain on disposal of
$7.8 million for the period ended September 30, 2012 (see section "Sale of
equity investment in Talas Joint Venture" below). In relation to the
Subscription the Company considers this to be a derivative asset and
subsequently re-measured the fair value of the Subscription as at September 30,
2012 resulting in a derivative loss of $1.3 million for the period ended
September 30, 2012.
On November 1, 2012 the Company announced that it had entered into the
Exclusivity Agreement with David Invest to fund exploration work on a
non-refundable basis during the Exclusivity Period, subject to the Company
successfully renewing the exploration licenses expiring on December 31, 2012, in
return for which the Company would grant David Invest the exclusive right during
the Exclusivity Period to acquire the Akdjol-Tokhtazan Project for a
consideration of $4.5 million. As at September 30, 2012 the Company considered
that this asset continued to meet the criteria to be classified as "held for
sale" and as a result of re-measuring the fair value less costs to sell of the
disposal group, recognized an impairment loss of $1.3 million to net income as
at September 30, 2012 (see section "Asset held for sale" below).
As at September 30, 2012 the Company had net assets of $33.0 million ($32.1
million as at December 31, 2011) of which $13.5 million was cash and cash
equivalents ($10.3 million as at December 31, 2011) and a $6.4 million
receivable asset representing the fair value of the CAD$10 million Subscription
entered into by Gold Fields which is subject to the Company obtaining the Formal
Kazakh Waiver, as described in section "Disposal of equity investment in the
Talas Joint Venture" below.
The net income of $3.8 million for the three months ended September 30, 2012
consisted of: a net gain in relation to the Sale to the Gold Fields Group of
$7.9 million which was partially offset by administrative costs of $0.8 million,
legal and professional costs of $0.3 million, a derivative loss of $1.3 million
in relation to the Subscription, the Company's share of the Talas Joint Venture
losses of $0.2 million up to the completion of the Sale on July 23, 2012, an
impairment loss of $1.3 million in relation to the asset held for sale and a net
foreign exchange loss of $0.1 million.
The Company's cash flows, cash and cash equivalents as at September 30, 2012
were $13.4 million compared to $10.3 million as at December 31, 2011,
representing an increase of $3.1 million. The increase was due primarily to the
net receipt of $9.8 million from the completion of the Sale partially offset by
corporate and exploration expenditure of $4.7 million, capital expenditure of
$1.3 million, Orsu's 40% funding of the Talas Joint Venture of $0.3 million and
deferred finance costs of $0.4 million in relation to the Karchiga Project.
In relation to the Karchiga Project, during the nine months ended September 30,
2012, the Company began the process of seeking to secure financing and incurred
associated costs of $0.4 million and also incurred expenditure in preparation
for the construction of a mining and processing facility of $1.2 million. Both
the finance costs and project expenditure were capitalised in the interim
financial statements as at September 30, 2012 (see section "Karchiga Project
Pre-Production and Deferred Finance Costs" below).
FINANCIAL POSITION AS AT SEPTEMBER 30, 2012
As at September 30, 2012 the Company's net assets were $31.7 million, compared
with $32.1 million as at December 31, 2011, of which $13.5 million consisted of
cash and cash equivalents ($10.3 million as at December 31, 2011).
The decrease in net assets of $0.4 million was due primarily corporate and
exploration expenditure of $4.7 million, the derivative loss of $1.3 million,
the impairment of the asset held for sale of $1.3 million, and the Company's 40%
share of the Talas Joint Venture losses of $0.8 million. This was partially
offset by the a net gain on disposal of the Talas Joint venture of $7.8 million
and a stock based compensation charge of $0.1 million.
KARCHIGA PROJECT PRE-PRODUCTION AND DEFERED FINANCE COSTS
Karchiga Pre-Production Costs
In March 2012, the Company successfully completed a Karchiga DFS for the
Karchiga Project. At the same time and subsequently the Company incurred costs
related to the construction of a mining and processing facility at the Karchiga
Project. Under IFRS, IAS 16 "Property, Plant and Equipment", costs are
capitalized during the development phase, defined as being from the date that an
economic study is completed and the date the asset is deemed to be available for
use (or the "pre-production costs") and are those that can be directly
attributable to bringing the asset to the condition necessary for it to be
capable of operating in the manner intended by the Company. Under IAS 16, these
pre-production costs are capitalized, as they meet the criteria for the
capitalization for a basic asset.
These and future costs will be recorded as "Property Plant and Equipment" until
such time when the asset is "available for use" (defined as when commercial
levels of production are capable of being achieved). As at September 30, 2012
the Company incurred $1.2 million of Pre-Production expenditure which it
capitalised.
Karchiga Finance Costs
In relation to the Karchiga Project, following the successful completion of the
Karchiga DFS in March 2012 the Company is in the process of seeking to secure
debt financing for the construction of a mining and processing facility. As a
result under IFRS, IAS 39 Financial Instruments: Recognition and Measurement,
these legal and professional fees incurred in the process of securing the debt
finance have been capitalised. These capitalised costs along with future
financing costs capitalised, in relation to the Karchiga Project, will be
amortised over the term of any proposed debt. For the six months ended September
30, 2012 the company incurred $400,000 of advisory fees which are treated as
transaction costs.
ASSET HELD FOR SALE
The exploration license area for the Akdjol-Tokhtazan Project is located in the
Jalal-Abad Oblast, western Kyrgyzstan and comprises the Akdjol license and
Tokhtazan license. During 2010, the Company identified the Akdjol license area
as a gold-silver epithermal prospect and the Tokhtazan license area as a gold
prospect. The Akdjol and Tokhtazan licenses expire on December 31, 2012.
In the fourth quarter of 2011, the Company decided to focus its resources and
activities on the development of its Karchiga property and as such, considered
the Akdjol-Tokhtazan Project a non core asset which would be available for sale.
Under IFRS 5, "Non-current Assets Held For Sale and Discontinued Operations",
the Company classified the assets and liabilities related to the
Akdjol-Tokhtazan Project (the disposal group) as held for sale as at September
30, 2012 and December 31, 2011.
In November 2012, the Company announced that it had entered into the Exclusivity
Agreement with David Invest to fund exploration work on a non-refundable basis
during the Exclusivity Period, subject to the Company successfully renewing the
exploration licenses expiring on December 31, 2012, in return for which the
Company would grant David Invest the exclusive right during the Exclusivity
Period to acquire the Akdjol-Tokhtazan Project for a consideration of $4.5
million. As at September 30, 2012 the Company considers that this asset
continued to meet the criteria to be classified as "held for sale" and as a
result of re-measuring the fair value less costs to sell of the disposal group,
recognized an impairment loss of $1.3 million to net income in the period ended
September 30, 2012.
The amount of comprehensive loss attributable to non-controlling interests in
relation to the losses incurred by the disposal group in the period ended
September 30, 2012 and December 31, 2011 is nil.
SALE OF EQUITY INVESTMENT IN THE TALAS JOINT VENTURE
The Talas exploration license area comprises the Taldybulak, Kentash, Barkol and
Korgontash licenses in Kyrgyzstan. The primary exploration property within the
Talas exploration license area is the Taldybulak gold-copper-molybdenum porphyry
deposit.
Under the terms of the JV Agreement with Gold Fields in which Gold Fields became
the project operator for the Talas Project and the Gold Fields Group earned a
60% interest in the Talas JV Company in the first quarter of 2010. In doing so
the Gold Fields Group earned the ability to unilaterally control the
operational, financial and investment decisions of the Talas Joint Venture
Company. For this reason the Company's 40% minority interest in the Talas Joint
Venture Company was accounted for as an associate under the equity method until
its Sale in an agreement dated July 13, 2012 with Gold Fields.
In July 2012, the Company received $10 million following the completion of the
Sale to the Gold Fields Group. The Company also received $240,089 cash, being
the Company's aggregate contribution in 2012 to an exploration programme
previously agreed with the Gold Fields Group. The $240,089 received for Orsu's
40% pro rata funding contribution to the Talas Joint Venture was recorded
against Orsu's equity investment in the Talas Joint Venture up to July 13, 2012.
As the Sale resulted in the Gold Fields Group owning a 100% interest in the
Talas Project, the Company's joint venture in relation to the Talas Project was
terminated upon completion of the Sale.
In addition the Gold Fields Group agreed to the Subscription for 25 million
Units at a price of CAD$0.40 per Unit for gross proceeds of CAD$10 million, with
each Unit consisting of a Common Share and one half of one Warrant. Each Warrant
will be exercisable for a period of three years from the date of issue to
acquire one Common Share at a price of CAD$0.50. The gross proceeds of CAD$10
million cash are being held in escrow pending the Company obtaining the Formal
Kazakh Waiver or Gold Fields waiver of such condition. The Units will not be
issued to the Gold Fields Group until such condition has been satisfied or
waived by Gold Fields Group. In the financial statements as at September 30,
2012 the Company measured the fair value of this receivable as at July 13, 2012
and recorded net income of $7,638,000, being the expected gross value of the
Subscription, $9,862,000 (CAD $10 million), net of the fair value of the Common
Shares ($1,972,000) and Warrants ($252,000) to be issued in connection with the
Subscription. This derivative asset is re-measured at fair value at each
reporting date until the conditions for release from escrow are met and the
Subscription is completed. See the financial statements as at September 30, 2012
for further details.
The net gain on the Sale of the Talas Joint Venture is shown below:
July 13,
2012
$000
Cash proceeds received 10,000
Fair value of Subscription proceeds held in escrow 7,638
---------
Total sale consideration 17,638
Less:
Equity investment in Talas Project as at January 1, 2012 10,111
Funding provided by the Company during the period, net of
recovery of $240,089 288
Less: Company's 40% share of operating losses to date of
disposal (812)
-------
Equity investment in Talas Project written off (9,587)
Legal and professional fees (184)
---------
Net gain on disposal of Talas Project as at July 13, 2012 7,867
---------
---------
The change in the fair value of the derivative receivable from the date of the
sale to September 30, 2012, is as follows:
September 30,
2012
$000
Derivative receivable as at July 13, 2012 7,638
Derivative loss on fair value measurement (1,254)
---------------
Derivative receivable as at September 30, 2012 6,384
---------------
---------------
LIQUIDITY AND CAPITAL RESOURCES
As at September 30, 2012 the Company's main source of liquidity was unrestricted
cash and cash equivalents of $13.5 million, compared with $10.3 million as at
December 31, 2011.
The Company measures its consolidated working capital as comprising free cash,
accounts receivable, prepayments and other receivables, less accounts payable
and accrued liabilities. As at September 30, 2012, the Company's consolidated
working capital was $14.5 million (compared with a consolidated working capital
of $11.5 million as at December 31, 2011).
The Company's working capital needs as at September 30, 2012 included the
maintenance of the Company's interests in, and the further exploration and the
development of, the Company's mineral properties, and the funding of general
corporate, legal and professional expenses. The Company expects to fund its
working capital requirements for 2012, other than as set out below, and be able
to contribute towards the pursuit of future growth opportunities (which may
include acquiring one or more additional assets), if and when such opportunities
arise, from its unrestricted cash of $13.5 million as at September 30, 2012 and
potential consideration of $4.5 million from the sale of the Akdjol-Tokhtazan
Project per the Exclusivity Agreement (as discussed above). In the Company's
view, the consolidated working capital as at September 30, 2012 is sufficient to
satisfy its working capital needs including the Initial Working Programme for
the Balkhash Project, other than as described below, for at least the next
twelve months.
The construction of mining facilities and commencement of mining operations at
the Karchiga Project, if any, will require an estimated initial capital
expenditure of $115 million (see "Operational review - Karchiga copper project,
Kazakhstan") for which the Company will be required to raise additional
financing in the future. In July 2012, the Company appointed Barclays and
UniCredit as the Mandated Lead Arrangers to use commercially reasonable efforts
to secure project debt financing. If the Company secures the required debt
financing on acceptable commercial terms, and receives the final regulatory
approvals for the Karchiga Project, the Company intends to apply a substantial
proportion of the Sale proceeds and, if released from escrow, Subscription
proceeds towards the construction and development of the mine and related
processing facilities for the Karchiga Project. Whilst the Company has been
successful in raising debt and other financing in the past, the Company's
ability to raise additional debt and other financing as well as receiving the
Formal Kazakh Waiver for the Subscription may be affected by numerous factors
beyond the Company's control, including, but not limited to, adverse market
conditions and/or commodity price changes and economic downturn and those other
factors that are listed under "Risks and Uncertainties" in the Company's MD&A.
Consolidated Statements of Net income/(loss), and Comprehensive income/(loss)
(Unaudited)
(Prepared in accordance with IFRS)
----------------------------------------------------------------------------
Three months ended Nine months ended
September 30, September 30,
2012 2011 2012 2011
$000 $000 $000 $000
Operating expenses
Administration (843) (1,074) (3,007) (2,708)
Legal and professional (326) (315) (787) (899)
Exploration (20) (1,767) (1,015) (3,446)
Stock based compensation (13) (289) (122) (481)
Stock based compensation
- non employees - (2) (7) (37)
Company's share of Talas
Joint Venture losses (216) (269) (812) (712)
Foreign exchange losses (100) (141) (68) (6)
------------------------- -----------------------
(1,518) (3,857) (5,818) (8,289)
Gain on sale of Talas
Joint Venture 7,867 - 7,867 -
Loss on derivative
receivable (1,254) - (1,254) -
Impairment loss for asset
held for sale (1,331) - (1,331) -
Derivative gains share
purchase warrants - 155 - 6,071
Deferred consideration
income - - - 1,908
Net gain on settlement of
oil interests - 942 - 942
Finance income 4 22 28 53
------------------------- -----------------------
Net income/ (loss) and
comprehensive income/
(loss) 3,768 (2,738) (508) 685
------------------------- -----------------------
------------------------- -----------------------
Net income/ (loss)
attributable to:
Shareholders of the
Company 3,764 (2,653) (438) 1,302
Non-controlling interest 4 (85) (70) (617)
------------------------- -----------------------
3,768 (2,738) (508) 685
------------------------- -----------------------
------------------------- -----------------------
Earnings/ (losses) per
share:
Basic $ 0.02 $ (0.02) $ 0.00 $ 0.01
Diluted $ 0.02 $ (0.02) $ 0.00 $ 0.01
Weighted average number
of common shares (in
thousands) 157,696 157,696 157,696 157,696
Consolidated Balance Sheets (Unaudited)
(Prepared in accordance with IFRS)
----------------------------------------------------------------------------
September 30, December 31,
2012 2011
Assets $000 $000
Current assets
Cash and cash equivalents 13,455 10,319
Prepaid and receivables 1,683 1,394
Assets of Akdjol-Tokhtazan Project held for
sale 4,534 6,116
Derivative receivable 6,384 -
-------------------------------
26,056 17,829
Non-current assets
Deferred finance costs 400 -
Property, plant and equipment 5,982 353
Exploration properties - 4,404
Equity investment in Talas Joint Venture - 10,111
-------------------------------
6,382 14,868
-------------------------------
Total assets 32,438 32,697
-------------------------------
-------------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 570 448
Liabilities of Akdjol-Tokhtazan Project held
for sale 64 66
-------------------------------
634 514
Non-current liabilities
Other liabilities 120 120
-------------------------------
754 634
Equity
Share capital 380,145 380,145
Share purchase warrants - 1,131
Share purchase options 6,054 6,062
Contributed surplus 28,096 26,828
Non-controlling interest (324) (254)
Deficit (382,287) (381,849)
-------------------------------
31,684 32,063
-------------------------------
Total equity and liabilities 32,438 32,697
-------------------------------
-------------------------------
Consolidated Statements of Cash Flows (Unaudited)
(Prepared in accordance with IFRS)
----------------------------------------------------------------------------
Nine months ended
September 30,
2012 2011
$000 $000
Cash flows used by operating activities
Net (loss)/ income for the period (508) 685
Items not affecting cash:
Company share of Talas Joint Venture losses 812 712
Gain on sale of investment in Talas Joint Venture (7,867) -
Depreciation and amortization 93 94
Impairment of asset held for sale 1,331 -
Loss on derivative receivable 1,254 -
Share-based payments 129 518
Foreign exchange (gains)/ losses (5) 13
Gain on settlement of oil interests - (942)
Deferred consideration - (1,908)
Derivative gains share purchase warrants - (6,071)
-------------------
(4,761) (6,899)
Changes in non-cash working capital:
Accounts receivable and other assets (57) (373)
Accounts payable and accrued liabilities 123 (15)
-------------------
Net cash used by operating activities (4,695) (7,287)
Cash flows from/ (used by) investing activities
Expenditures on property, plant and equipment (1,315) (61)
Funding of investment in Talas Joint Venture (288) (611)
Cash proceeds from sale of Talas Joint Venture, net of
legal and professional fees 9,816 -
Deferred consideration received - 7,000
Proceeds from net investment in residual oil and gas
interests - 1,582
Acquisition of Eildon minority interest - (6,188)
-------------------
Net cash from investing activities 8,213 1,722
Cash flows used for financing activities
Deferred finance costs (400) -
-------------------
Net cash used for financing activities (400) -
-------------------
Net increase/ (decrease) in cash and cash equivalents 3,118 (5,565)
-------------------
Cash and cash equivalents - Beginning of the period 10,341 19,596
-------------------
Cash and cash equivalents - End of the period 13,459 14,031
-------------------
-------------------
Cash and cash equivalents per the consolidated balance
sheets 13,455 14,031
Included in the Akdjol-Tokhtazan Project classified held
for sale 4 -
FORWARD-LOOKING INFORMATION
This press release and the Company's MD&A contains or refers to forward-looking
information. All information, other than information regarding historical fact
that addresses activities, events or developments that the Company believes,
expects or anticipates will or may occur in the future is forward-looking
information. Such forward-looking information includes, without limitation,
statements relating to: the continued and future maintenance, exploration and
development, as applicable, of the Company's properties and the timing related
thereto; development and operational plans and objectives, including the
Company's expectations relating to the development of the Karchiga Project; the
Company's ability to satisfy certain future expenditure obligations; mineral
resource and mineral reserve estimates; estimated project economics, cash flow,
costs, expenditures, revenue, capital payback, performance and economic
indicators and sources of funding; the use and sufficiency of the Company's
working capital for the next twelve months; the anticipated arranging of a debt
facility by the Mandated Lead Arrangers and the potential participation by other
debt providers; the anticipated receipt by the Company of the proceeds of the
Subscription and the value attributed thereto and the Company's expected uses
thereof and the proceeds from the Sale; the estimated mine life, NPV and IRR
for, and forecasts relating to tonnages and amounts to be mined from, and
processing and expected recoveries and grades at, the Karchiga Project as well
as the other forecasts, estimates and expectations relating to the Karchiga DFS
Report, the Karchiga Scoping Study, the SRK May 2011 Pit-Constrained Mineral
Resource Estimates and the SRK December 2011 Pit-Constrained Mineral Resource
Estimates;
future prices and trends relating to copper, gold and molybdenum and the
expected effect thereof on the economic results of the Karchiga Project; the
mine design and plan for the Karchiga Project, including the potential start of
construction at, and production from, the Karchiga Project as well as the
expected timing of same and the Company's ability to receive the necessary
permits and approvals in connection therewith; the estimated holdings of the
Gold Fields Group in the Common Shares and Warrants following the completion of
the Subscription; the anticipated sale of the Akdjol-Tokhtazan Project and the
timing and potential proceeds (including the uses thereof and valuation
attributed thereto) with respect thereto; the Company's belief that the results
from the mineralogical study relating to the Akdjol-Tokhtazan Project suggest
that gold should be metallurgically accessible; the future political and legal
regimes and regulatory environments relating to the mining industry in
Kyrgyzstan and/or Kazakhstan; the Company's expectations and beliefs with
respect to the waiver of the State's pre-emptive right with respect to the
Karchiga Project and the past placements of the Common Shares being covered
thereby; receipt of the Formal Kazakh Waiver or the waiver thereof by Gold
Fields as a condition to the completion of the Subscription; the significance of
any individual claims by non-Ontario residents with respect to the Claim; and
the Company's future growth (including new opportunities and acquisitions) and
its ability to raise or secure new funding (including for construction at the
Karchiga Project).
The forward-looking information in this press release and the Company's MD&A
reflects the current expectations, assumptions or beliefs of the Company based
on information currently available to the Company. With respect to
forward-looking information contained in this press release and the Company's
MD&A, the Company has made assumptions regarding, among other things, the
Company's ability to generate sufficient funds from capital markets and/or debt
sources to meet its future expected obligations and planned activities
(including the ability of the Mandated Lead Arrangers to secure a project debt
finance facility on terms acceptable to the Company), the Company's business
(including the continued development of the Karchiga Project and the timing and
methods to be employed with respect to same), the estimation of mineral
resources and mineral reserves (as set out above under "Operational Review"),
the parameters and assumptions employed in the Karchiga DFS Report, the Karchiga
Scoping Study, the SRK May 2011 Pit-Constrained Mineral Resource Estimates and
the SRK December 2011 Pit-Constrained Mineral Resource Estimates, the economy
and the mineral exploration and extraction industry in general, the political
environments and the regulatory frameworks in Kazakhstan and Kyrgyzstan with
respect to, among other things, the mining industry generally, royalties/MPTs,
taxes, environmental matters and the Company's ability to obtain, maintain,
renew and/or extend required permits, licences, authorisations and/or approvals
from the appropriate local regulatory authorities, including the receipt of the
necessary construction and development permits and approvals required to develop
the Karchiga Project as anticipated as well as the Kazakh Formal Waiver and the
renewal of the Akdjol-Tokhtazan exploration licenses, that the previously waiver
granted by the Competent Authority covers any pre-emptive right that the
Competent Authority or State has in respect of any past placements, future
capital, operating and production costs and cash flow discounts, anticipated
mining and processing rates, the Company's ability to continue to obtain
qualified staff and equipment in a timely and cost-efficient manner, assumptions
relating to the Company's critical accounting policies, and has also assumed
that no unusual geological or technical problems occur, and that equipment works
as anticipated, no material adverse change in the price of copper, gold or
molybdenum occurs and no significant events occur outside of the Company's
normal course of business.
Forward-looking information is subject to a number of risks and uncertainties
that may cause the actual results of the Company to differ materially from those
discussed in the forward-looking information, and even if such actual results
are realised or substantially realised, there can be no assurance that they will
have the expected consequences to, or effects on, the Company. Factors that
could cause actual results or events to differ materially from current
expectations include, but are not limited to: risks normally incidental to
exploration and development of mineral properties and operating hazards;
uncertainties in the interpretation of results from drilling and metallurgical
test work; the possibility that future exploration, development or mining
results will not be consistent with expectations; uncertainty of mineral
resource and mineral reserve estimates; technical and design factors;
uncertainty of capital and operating costs, production and economic returns;
uncertainties relating to the estimates and assumptions used, and risks in the
methodologies employed, in the Karchiga DFS Report, the Karchiga Scoping Study,
the SRK May 2011 Pit-Constrained Mineral Resource Estimates and the SRK December
2011 Pit-Constrained Mineral Resource Estimates, and that the completion of
additional work on the Karchiga Project could result in changes to the estimates
relating to the Karchiga DFS Report, the Karchiga Scoping Study, the SRK May
2011 Pit-Constrained Mineral Resource Estimates and the SRK December 2011
Pit-Constrained Mineral Resource Estimates, the Company's inability to obtain,
maintain, renew and/or extend required licences, permits, authorizations and/or
approvals from the appropriate regulatory authorities, including (without
limitation) the Company's inability to obtain (or a delay in obtaining) the
necessary construction and development permits and local regulatory approvals
for the Karchiga Project or the Formal Kazakh Waiver and/ or the renewal of the
Akdjol-Tokhtazan exploration licenses, and other risks relating to the
regulatory frameworks in Kazakhstan and Kyrgyzstan; adverse changes in the
political environments in Kazakhstan and Kyrgyzstan and the laws governing the
Company, its subsidiaries and their respective business activities; inflation;
changes in exchange and interest rates; adverse changes in commodity prices; the
inability of the Company to obtain required financing on favourable terms or at
all (including with respect to the debt financing expected to be secured by the
Mandated Lead Arrangers) or to complete the Subscription or the disposition of
the Akdjol-Tokhtazan Project; adverse general market conditions; lack of
availability, at a reasonable cost or at all, of equipment or labour; the
inability to attract and retain key management and personnel; the possibility of
non-resident class members commencing individual claims in connection with the
Claim; the Company's inability to delineate additional mineral resources and
mineral reserves; and future unforeseen liabilities and other factors including,
but not limited to, those listed under "Risk and Uncertainties" in this MD&A.
Any mineral resource and mineral reserve figures referred to in this press
release and the Company's MD&A are estimates and no assurances can be given that
the indicated levels of minerals will be produced. Such estimates are
expressions of judgment based on knowledge, mining experience, analysis of
drilling results and industry practices. Valid estimates made at a given time
may significantly change when new information becomes available. While the
Company believes that the mineral resource and mineral reserve estimates in
respect of its properties are well established, by their nature mineral resource
and mineral reserve estimates are imprecise and depend, to a certain extent,
upon statistical inferences which may ultimately prove unreliable. If such
mineral resource and mineral reserve estimates are inaccurate or are reduced in
the future, this could have a material adverse impact on the Company. Due to the
uncertainty that may be attached to inferred mineral resources, it cannot be
assumed that all or any part of an inferred mineral resource will be upgraded to
an indicated or measured mineral resource as a result of continued exploration.
Mineral resources that are not mineral reserves do not have demonstrated
economic viability. The Karchiga Scoping Study is preliminary in nature, and
includes inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them that would
enable them to be categorized as mineral reserves. There is no certainty that
the conclusions of the Karchiga Scoping Study will be realized.
Any forward-looking information 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 information,
whether as a result of new information, future events or results or otherwise.
Although the Company believes that the assumptions inherent in the
forward-looking information are reasonable, forward-looking information is not a
guarantee of future performance and accordingly undue reliance should not be put
on such information due to the inherent uncertainty therein.
FOR FURTHER INFORMATION PLEASE CONTACT:
Orsu Metals Corporation
Kevin Denham
Chief Financial Officer and Company Secretary
+44 (0) 20 7518 3999
www.orsumetals.com
Canaccord Genuity Limited
Andrew Chubb/Ryan Gaffney
+44 (0) 20 7523 8000
Vanguard Shareholder Solutions
+1 604 608 0824
1 Year WAI Capital Investments Corp. Chart |
1 Month WAI Capital Investments Corp. Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
