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 quarter ended
June 30, 2013. A full Management's Discussion and Analysis of the results
("MD&A") and Consolidated Financial Statements for the quarter ended June 30,
2013 ("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 have been prepared in accordance with applicable International
Financial Reporting Standards ("IFRS").
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.
SECOND QUARTER 2013 HIGHLIGHTS
Extension of East Balkhash 2 Agreement, April 2013 - as part of the objective to
acquire new exploration licenses in Kazakhstan, in April 2013 the Company
announced that it had entered into a new exclusivity agreement (the "Balkhash
Agreement"), superseding the initial agreement announced in November 2012, to
jointly explore with Asem Tas-N LLC ("Asem Tas"), a privately owned Kazakh
registered company and the owner of the relevant subsoil use contract, a license
area of approximately 6,000km2 (referred to herein as the "East Balkhash 2"
license area) in Eastern Kazakhstan, which is host to a 30km long
Dzharyk-Taisogan cluster of copper-polymetallic occurrences (referred to as the
"Balkhash Project"). Under the terms of the Balkhash Agreement, the Company has
been granted the exclusive right for a period of 175 days, ending in September
2013, subject to extension by mutual agreement of the parties (the "Exclusivity
Period"), to explore and participate in the Balkhash Project (see "Operational
Review - Balkhash Project, Kazakhstan").
Appointment of Technical Director, April 2013 - the Company announced that Mr.
Christopher Power, previously the Project Manager for the Company's Karchiga
Project, had been appointed as Technical Director, replacing Mr. Raymond Oates.
POST QUARTER HIGHLIGHTS
July 2013 - the Company announced that Gold Fields Exploration B.V., a wholly
owned subsidiary of Gold Fields Limited ("Gold Fields" or collectively with
certain of its subsidiaries, the "Gold Fields Group") completed the subscription
for 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 of the Company (a "Common Share") and one half of
one common share purchase warrant (each whole warrant, a "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 Company received the
formal waiver of the Kazakh Government's pre-emptive right as well as consent
from the relevant Kazakh authorities for the issuance and placement of
securities pursuant to the Subscription, which satisfied the condition for such
completion. (the "Kazakh Formal Waiver"). Accordingly, the Company issued to
Gold Fields 25,000,000 Common Shares and 12,500,000 Warrants. Following the
issuance the Gold Fields Group hold, in aggregate, 26,134,919 Common Shares,
representing a 14.31% interest in the Company.
OPERATIONAL REVIEW
The Company's principal and most advanced project is the property, within the
Republic of Kazakhstan (or "Kazakhstan"), comprising a license area in eastern
Kazakhstan containing the Karchiga volcanogenic massive sulphide ("VMS") deposit
which is part of the Rudny Altai polymetallic belt (the "Karchiga Project"). In
addition the Company continues to seek to acquire new exploration license areas
within Kazakhstan. The Company also holds exploration licenses within the Kyrgyz
Republic (or "Kyrgyzstan").
During the six months ended June 30, 2013 the Company continued to jointly
explore the Balkhash Project with Asem Tas as well as continuing to seek finance
for and planning the construction of mine and processing facilities for the
Karchiga Project.
The Company continues to use its current working capital resources to satisfy
its expenditure obligations in respect of its corporate and administrative
expenditures, as well as the obligations under the Balkhash Agreement and the
acquisition of any new mineral exploration properties. However, the current
working capital resources are not sufficient to meet the financing requirements
relating to the construction of mine and processing facilities for the Karchiga
Project, for which separate project financing is required and which is described
below.
Karchiga Copper Project, Kazakhstan
During the six months ended June 30, 2013 the Company continued to work
primarily on planning for the construction of mine and processing facilities for
the Karchiga Project and has also continued to seek finance for and planning the
construction of mine and processing facilities for the Karchiga Project. As part
of the process of planning for the construction of mine and processing
facilities for the Karchiga Project, in the first quarter of 2013, the Company
obtained the remaining local and regulatory approvals required for the
commencement of mining and construction at the Karchiga Project.
In 2012 the Company completed a feasibility study for the Karchiga Project, (the
"Karchiga Definitive Feasibility Study Report") the results of which estimated
an initial capital expenditure requirement of $115 million for the Karchiga
Project. To assist the Company in arranging finance for such expenditures, in
July 2012, the Company appointed Barclays Bank plc ("Barclays") and UniCredit
Bank AG ("UniCredit") (together the "Mandated Lead Arrangers") to use
commercially reasonable efforts to secure debt financing of up to $90 million
(subject to commercially acceptable terms for the facility being agreed and the
Mandated Lead Arrangers obtaining the necessary internal approvals) as well as
extending the appointment of Endeavour Financial Limited ("Endeavour") to
provide financial advisory services to assist the Company in securing further
debt and other forms of finance required.
As at the date of this press release the Company continues with its efforts to
secure finance for the Karchiga Project. Until such time as it is able to secure
the required financing, the Company will not enter into any contracts to place
advance orders for mining equipment or construction materials and will be unable
to determine the expected timing for the commencement of construction (see the
"Liquidity and capital resources" section below and "Risks and uncertainties"
section of the Company's MD&A).
Other Projects
The Company's exploration interests in Kyrgyzstan consist of the Akdjol and
Tokhtazan exploration licenses (or the "Akdjol-Tokhtazan Project") located in
the Jebel-Abad Oblast, western Kyrgyzstan. In 2011, the Company determined the
Akdjol-Tokhtazan Project to be a non core asset which would be available for
sale and subsequently, in November 2012, the Company announced that it had
entered into an exclusivity agreement with David-Invest LLP ("David-Invest"), a
Kyrgyz registered company, with a view to the potential sale of the Company's
interest in the Akdjol-Tokhtazan Project (the "Akdjol-Tokhtazan Exclusivity
Agreement"). Pursuant to the Akdjol-Tokhtazan Exclusivity Agreement,
David-Invest was granted the exclusive right until September 1, 2013 (the
"Akdjol-Tokhtazan Exclusivity Period") to acquire, subject to the renewal of the
relevant exploration licenses expiring on December 31, 2012 (which have been
renewed to December 31, 2015), for consideration of $4.5 million through the
acquisition of Orsu's wholly-owned subsidiary, Tournon Finance Limited. The key
terms of the Akdjol-Tokhtazan Exclusivity Agreement are that in return for being
granted exclusivity, David-Invest will fund the exploration programme for the
Akdjol-Tokhtazan Project on a non-refundable basis during the Akdjol-Tokhtazan
Exclusivity Period. In the event of the sale of the Akdjol-Tokhtazan Project the
Company will no longer have any exploration interests in Kyrgyzstan.
Balkhash Project, Kazakhstan
In April 2013, the Company announced that it had entered into the Balkhash
Agreement to jointly explore the Balkhash Project with Asem Tas. The Balkhash
Agreement replaces the initial agreement which the Company announced in its
press release on November 12, 2012.
The Balkhash Agreement
The key terms of the Balkhash Agreement with Asem Tas to jointly explore the
Balkhash Project include:
1) Orsu has been granted the exclusive right during the Exclusivity Period
to explore and participate in the Balkhash Project.
2) During the Exclusivity Period:
a. Orsu and Asem Tas will continue to jointly explore the Balkhash
Project, including geophysical works and verification drilling of
exploration targets;
b. Orsu will provide funding for exploration works at the Balkhash
Project in the amount of approximately $0.9 million (including $0.3
million already funded in the six months ended June 30, 2013 pursuant
to the predecessor agreement announced on November 12, 2012) in
accordance with a contractual working programme agreed by both parties
(the "Working Programme"), and
c. Asem Tas will apply to transfer the exploration licence for the
Balkhash Project to a newly formed Kazakh legal entity jointly owned
by Orsu and Asem Tas (the "Joint Venture Company"), which will be a
subsidiary of Orsu, with Orsu holding an effective interest of 55%. A
transfer of the exploration license to the Joint Venture Company will
be conditional upon obtaining a formal waiver of the Kazakh
Government's pre-emptive right.
3) Upon the effective transfer of the exploration license to the Joint
Venture Company Orsu has agreed to pay Asem Tas:
a. up to $1.5 million to compensate Asem Tas for historical exploration
costs incurred prior to 2012 (excluding any costs funded by Orsu),
b. $20 per tonne of economically extractable copper equivalent, up to a
maximum of $10 million, less any amount paid under item 3) a. above,
on or before completion of a positive preliminary economic assessment
study, and
c. $20 per additional tonne of economically extractable copper
equivalent, up to a maximum of $15 million, less any amounts paid
under 3) a. and 3) b. above, on completion of a positive definitive
feasibility study.
4) Orsu may terminate its funding at any point before the earlier of the
effective transfer of the exploration licence or the end of the
Exclusivity Period. Where the approval of the relevant authorities for
the transfer of the 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 expenditure in connection with the Working Programme.
5) Orsu will finance the works until completion of the definitive
feasibility study and Orsu will be responsible for securing debt and
financing for the project.
6) 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 Joint Venture
Company, for cash or shares, at a price determined by an independent
expert.
FINANCIAL RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2013
The Company is pleased to announce that losses continued to narrow in the
quarter with a net loss on continuing operations of $0.8 million for the three
months ended June 30, 2013, compared to a net loss on continuing operations of
$1.7 million for the three months ended June 30, 2012, and a net loss on
continuing operations of $1.2 million for the prior quarter.
The net loss of $0.8 million for the three months ended June 30, 2013 consisted
of: administrative costs of $0.82 million, legal and professional costs of $0.1
million, exploration costs of $0.34 million partially offset by a derivative
gain in relation to the derivative receivable of $0.5 million.
As at June 30, 2013 the Company had net assets of $27.8 million ($29.8 million
as at December 31, 2012) of which $5.1 million was cash and cash equivalents
($9.8 million as at December 31, 2012) and a $7.96 million derivative receivable
($7.3 million as at December 31, 2012) representing the fair value of the
Subscription (as defined below).
In July 2013, the Company received gross proceeds of CAD$10 million following
the completion of the Subscription with Gold Fields which the Company considers
to be a non-adjusting event in the financial statements as at June 30, 2013
(details in section below "Derivative financial instruments").
In respect of the Company's cash flows, the decrease in cash and cash
equivalents for the six months to June 30, 2013 was $4.6 million was due
primarily to corporate and exploration expenditure of $3.4 million, a further
$1.1 million for expenditure on property, plant and equipment and deferred
finance costs of $0.1 million in relation to debt finance for the Karchiga
Project.
Derivative financial instruments
As at June 30, 2013, the Company's derivative instruments consist of a
derivative receivable in relation to the Subscription.
In 2012 the Company sold its 40% interest in a property in northwest Kyrgyzstan
(the "Talas Project") to the Gold Fields for cash consideration of $10 million
(the "Sale"). At the same time, the Gold Fields Group entered into an agreement
for the Subscription for 25 million Units of the Company, consisting of 25
million Common Shares and 12.5 million Warrants of the Company for gross
proceeds of CAD$10 million. 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. Completion of the Subscription was conditional on the Company
obtaining the Kazakh Formal Waiver the application for which was submitted in
September 2012. Until the completion of the Subscription the gross proceeds of
CAD$10 million were held in escrow and the Units not issued to the Gold Fields
Group until such condition had been satisfied or waived by the Gold Fields
Group. Following satisfaction of the condition and the issue of the Units, all
shares issued pursuant to the Subscription and any subsequent exercise of the
warrants are subject to a hold restriction for 4 months after the date of
issuance.
As at June 30, 2013 the Company has measured the fair value of this derivative
receivable to be $7.96 million ($7.3 million as at December 31, 2012) and as a
result recoded a derivative gain of $0.7 million for the six months ended June
30, 2013.
Subsequent to the period end, on July 24, 2013 the Company successfully obtained
the Kazakh Formal Waiver satisfying all the conditions of the Subscription. As a
result the Company completed the Subscription and issued 25 million Common
Shares at a price of CAD$.40 per Unit, and 12.5 million Warrants of the Company,
at an exercise price of CAD$0.50 per share, to Gold Fields. On July 25, 2013 the
Company received, in cash, the gross proceeds from the Subscription of CAD$10
million plus a further CAD$35,446 accumulated interest.
Under IAS 10 "Events after the Reporting Period", the Company considers that the
conditions which resulted in the completion of the Subscription and receipt of
CAD$10 million by the Company, as events that occurred after the reporting date
of June 30, 2013, and as such a non-adjusting event in the financial statements
as at June 30, 2013.
Following the issuance of the Units, the Gold Fields Group hold in total
26,134,919 Common Shares representing a 14.31% interest in the issued and
outstanding Common Shares of the Company on an undiluted basis.
Liquidity and capital resources
As at June 30, 2013 the Company's main source of liquidity was unrestricted cash
and cash equivalents of $5.1 million, compared with $9.8 million as at December
31, 2012.
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 June 30, 2013 the Company's consolidated working
capital was $5.2 million (compared with a consolidated working capital of $9.3
million as at December 31, 2012).
The Company's working capital needs as at June 30, 2013 included the maintenance
of funding for its exploration and development activities, including its
expenditure obligations under the Balkhash Agreement, the acquisition of new
mineral exploration properties, its corporate and administrative expenditures
requirements and potential contributions towards project finance, if and when
arranged, in relation to the Karchiga Project, as deemed appropriate. The
Company expects to fund its working capital requirements for 2013, 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 $5.1 million as
at June 30, 2013, proceeds from the Subscription and potential net proceeds, if
any, from the sale of the Akdjol-Tokhtazan Project (as discussed above). In the
Company's view, the consolidated working capital as at June 30, 2013 is
sufficient to satisfy its working capital needs, 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 requirement of $115 million, for which the Company will be required
to raise additional financing in the future. In 2012, the Company appointed the
Mandated Lead Arrangers to use commercially reasonable efforts to secure project
debt financing. If the Company secures the required debt financing on acceptable
commercial terms then it may also apply a proportion of the Subscription
proceeds towards the project financing requirements as the Company determines
necessary. Whilst the Company has been successful in raising debt and other
financing in the past, the Company's ability to raise additional debt and other
financing may be affected by numerous factors beyond the Company's control,
including, but not limited to, adverse market conditions and/or commodity price
changes and economic downturn and those other factors that are listed under the
"Risks and Uncertainties" section of the Company's MD&A.
The Company holds the majority of its surplus cash in interest-bearing bank
deposit accounts in CAD$, GBP and US$ currencies and manages such deposits in
light of its forecast cash needs and available market interest rates. The
majority of the Company's expenditures are in U.S. Dollars, Canadian Dollars,
Kazakh Tenge and British Pounds Sterling. The Company's liquidity may,
therefore, be adversely affected by, amongst other things, the ability of the
Company to accurately forecast its operating cash needs in the aforementioned
currencies, the Company's ability to convert its cash funds from U.S. Dollars
into the other aforementioned currencies, unfavorable movements in the U.S.
Dollar exchange rate relative to the aforementioned currencies, unfavorable
movements in the Canadian Dollar exchange rate relative to the aforementioned
currencies in relation to the gross proceeds of the Subscription, and the
Company's ability to earn interest on its cash deposits. Further information
regarding the Company's liquidity risk, currency risk and interest rate risk may
be found in the Company's audited financial statements for the year ended
December 31, 2012.
Consolidated statements of net loss and comprehensive loss (Unaudited)
(Prepared in accordance with IFRS)
----------------------------------------------------------------------------
Three months ended Six months ended
June 30, June 30,
2013 2012 2013 2012
$000 $000 $000 $000
Operating expenses
Administration (841) (1,100) (1,797) (2,164)
Legal and professional (110) (184) (326) (461)
Exploration (320) (33) (483) (1,003)
Stock based compensation (2) (19) (5) (108)
Stock based compensation - non
employees - - - (7)
Company's share of Talas Project
losses - (438) - (596)
Foreign exchange (losses)/gains (17) 11 (36) 32
-------------------- --------------------
(1,290) (1,763) (2,647) (4,307)
Gain on derivative receivable 522 - 696 -
Finance income - 49 6 31
-------------------- --------------------
Net loss and comprehensive loss (768) (1,714) (1,945) (4,276)
-------------------- --------------------
-------------------- --------------------
Net loss attributable to:
Owners of the parent (752) (1,704) (1,912) (4,202)
Non-controlling interest (16) (10) (33) (74)
-------------------- --------------------
(768) (1,714) (1,945) (4,276)
-------------------- --------------------
-------------------- --------------------
Loss per share
Basic $(0.00) $(0.01) $(0.01) $(0.02)
Diluted $(0.00) $(0.01) $(0.01) $(0.02)
Weighted average number of common
shares 157,696 157,696 157,696 157,696
(in thousands)
Consolidated Balance Sheets (Unaudited)
(Prepared in accordance with IFRS)
----------------------------------------------------------------------------
June 30 December 31
2013 2012
Assets $000 $000
Current assets
Cash and cash equivalents 5,142 9,771
Prepaid and receivables 819 870
Assets of Akdjol-Tokhtazan Project held for sale 4,495 4,508
Derivative receivable 7,966 7,270
----------------------------
18,422 22,419
Non-current assets
Deferred finance costs 1,052 939
Property, plant and equipment 8,166 7,076
Other assets 1,097 879
----------------------------
10,315 8,894
----------------------------
Total assets 28,737 31,313
----------------------------
----------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 733 1,360
Liabilities of Akdjol-Tokhtazan Project held for
sale 71 80
----------------------------
804 1,440
Non-current liabilities
Other liabilities 120 120
----------------------------
924 1,560
Equity
Share capital 380,145 380,145
Share purchase options 5,712 5,887
Contributed surplus 28,448 28,268
Non-controlling interest (381) (348)
Deficit (386,111) (384,199)
----------------------------
27,813 29,753
----------------------------
Total equity and liabilities 28,737 31,313
----------------------------
----------------------------
Consolidated Statements of Cash Flows (Unaudited)
(Prepared in accordance with IFRS)
----------------------------------------------------------------------------
Six months ended June 30,
2013 2012
$000 $000
Cash flows used by operating activities
Net loss and total comprehensive loss for the
period (1,945) (4,276)
Items not affecting cash:
Depreciation and amortization 63 62
Gain on derivative receivable (696) -
Share-based payments 5 115
Foreign exchange gains (5) (28)
Company share of Talas Project losses - 596
----------------------------
(2,578) (3,531)
Changes in non-cash working capital:
Accounts receivable and other assets (154) 200
Accounts payable and accrued liabilities (628) 92
----------------------------
Net cash used by operating activities (3,360) (3,239)
Cash flows used by investing activities
Expenditures on property, plant and equipment (1,151) (672)
Funding of investment in Talas Project - (528)
----------------------------
Net cash used by investing activities (1,151) (1,200)
Cash flows used for financing activities
Deferred finance costs (113) (80)
----------------------------
Net cash used for financing activities (113) (80)
----------------------------
Net decrease in cash and cash equivalents (4,624) (4,519)
----------------------------
Cash and cash equivalents - Beginning of the
period 9,771 10,341
----------------------------
Cash and cash equivalents - End of the period 5,147 5,822
----------------------------
----------------------------
Cash and cash equivalents per the consolidated
balance sheets 5,142 5,800
Included in the Akdjol-Tokhtazan Project
classified held for sale 5 22
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: development and operational plans and objectives,
including the Company's expectations relating to the continued and future
maintenance, exploration and development, as applicable, of the Karchiga Project
and the Balkhash Project and the timing related thereto and its acquisition and
development of new mineral exploration licenses, properties and projects; 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 Company's expected uses of the proceeds from the
Subscription and the proceeds from the Sale; the potential raising of additional
funding through the disposition of the Company's Kyrgyz assets and the proposed
uses thereof; 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 Definitive Feasibility Study Report;
the expected effect of copper prices on the economic results of the Karchiga
Project; the mine design and plan for the Karchiga Project, including mining at,
and production from the Karchiga Project; the anticipated sale of the
Akdjol-Tokhtazan Project (including the valuation attributed to the expected
proceeds thereon); the future political and legal regimes and regulatory
environments relating to the mining industry in Kazakhstan and/or Kyrgyzstan;
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; 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.
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 debt sources and/or capital
markets 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 exploration and development of, as applicable, the
Karchiga Project and the Balkhash Project and the timing and methods to be
employed with respect to same), the estimation of mineral resources and mineral
reserves, the parameters and assumptions employed in the Karchiga Definitive
Feasibility Study Report, 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, taxes, environmental matters and the Company's
ability to obtain, maintain, renew and/or extend required permits, licenses,
authorisations and/or approvals from the appropriate regulatory authorities,
including the previous 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 Definitive Feasibility Study Report;
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 the
disposition of the Akdjol-Tokhtazan Project; the Company's inability to obtain,
maintain, renew and/or extend required licenses, 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 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 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 "Risks and Uncertainties" section in the
Company's 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.
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
Ryan Gaffney
+44 (0) 20 7523 8000
Canaccord Genuity Limited
Andrew Chubb
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Vortex Metals (TSXV:VMS)
Historical Stock Chart
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Vortex Metals (TSXV:VMS)
Historical Stock Chart
From Jul 2023 to Jul 2024
