Orsu Metals Corporation ("Orsu" or the "Company"), the dual listed
(TSX:OSU)(AIM:OSU) London-based base and precious metals exploration and
development company today reports its audited annual results for the year ended
December 31, 2013.
A full Management's Discussion and Analysis of the results ("MD&A") and audited
Consolidated Financial Statements for the year ended December 31, 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 also be obtained upon request from the Company
Secretary.
The Financials have been prepared in accordance with applicable International
Financial Reporting Standards ("IFRS") as issued by the International Accounting
Standards Board ("IASB").
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 GBPGBP.
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.
2013 HIGHLIGHTS
In April 2013, the Company announced it had entered into a new exclusivity
agreement in respect of the Balkhash Project (as defined below) with Asem Tas,
superseding the previous exclusivity agreement from November 2012, to jointly
explore the East Balkhash 2 license area at the Balkhash Project. Under the
terms of the new exclusivity agreement, the Company was granted the exclusive
right for a period of 175 days ending in September 2013 to explore and
participate in the Balkhash Project.
In April 2013, the Company announced the appointment of Mr Christopher Power as
Technical Director, replacing Mr. Raymond Oates who resigned for personal
reasons.
In 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"), had 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. Completion
of the Subscription was conditional on the Company obtaining a formal waiver of
the Kazakh Government's pre-emptive right and consent for the issuance of Common
Shares pursuant to the Subscription (the "Kazakh Formal Waiver"). Following the
issuance the Gold Fields Group held in total 26,134,919 Common Shares
representing a 14.31% interest in the issued and outstanding Common Shares of
the Company.
In September 2013, the Company announced that following the expiry on September
1, 2013 of an exclusivity agreement with David-Invest LLP ("David-Invest"), a
Kyrgyz registered company, previously announced in November 2012, the Company
entered into a new exclusivity agreement in which David-Invest was granted the
exclusive right until December 31, 2013 to acquire the Akdjol-Tokhtazan Project
for $4.5 million in return for funding an exploration programme until such date.
Other than the terms described above, there were no significant changes to the
terms of the original exclusivity agreement signed in 2012.
In September 2013, the Company announced that it had entered into a new
exclusivity agreement in respect of the Balkhash Project to continue joint
exploration work with Asem Tas and had agreed to an amended work programme for
the remainder of 2013. Under the terms of such new exclusivity agreement, the
exclusivity period was extended to March 2014.
POST YEAR END HIGHLIGHTS
During January and February 2014, the Company announced that following the
expiry on December 31, 2013 of an exclusivity agreement with David-Invest
previously announced in September 2013 (see above), the Company had entered into
a new exclusivity agreement with David-Invest and David Way Limited, a Hong Kong
registered company, (together the "Potential Buyers") with a view to the
potential sale of the Akdjol-Tokhtazan Project. Under the terms of such
exclusivity agreement the Potential Buyers were granted the exclusive right to
indirectly acquire the Akdjol-Tokhtazan Project conditional upon the payment of
a non refundable deposit of $0.5 million by January 31, 2014. The Company did
not receive such deposit and as a result the exclusivity agreement with the
Potential Buyers expired (see section entitled "Operational Review -
Akdjol-Tokhtazan Project, Kyrgyzstan" of the Company's MD&A).
In March 2014, the Company announced that it had entered into the Balkhash
Agreement to continue joint exploration work with Asem Tas and had agreed to an
initial work programme for 2014 (the "2014 Work Programme"). Under the terms of
the Balkhash Agreement the Exclusivity Period ends in July 2014, subject to
extension by mutual agreement of both parties (see "Operational Review -
Balkhash Project, Kazakhstan" of the Company's MD&A).
EXECUTIVE CHAIRMAN'S STATEMENT
Despite the ongoing adverse global economic environment which has affected the
mining sector, especially the junior mining sector, during 2013, I and the Board
of Directors continued to consolidate and build on the progress made in 2012.
Progress has been made through the careful management of the Company's resources
and focusing on the key objectives of continuing the effort to bridge the
remaining financing requirement for the Karchiga Project (as defined below) and
continuing an exploration programme at the Balkhash Project (as defined below).
In relation to the Karchiga Project, together with the management of Orsu, I
held discussions with a number of interested parties during 2013, including
off-takers and sub-debt providers through to private equity funds, and reviewed
various options to bridge the financing requirement over and above the maximum
of $90 million that the Mandated Lead Arrangers (as defined below), appointed in
June 2012, will use commercially reasonable efforts to secure and the capital
requirement of the Karchiga Project. Whilst the Company was not able to conclude
matters in 2013, I and the Board of Directors remain committed to securing the
project finance for the Karchiga Project and to progress the project into
eventual construction and production.
In the fourth quarter of 2012 the Company entered into an exclusivity agreement
with our joint venture partner, Asem Tas, to fund a joint exploration programme
at the Balkhash Project in Eastern Kazakhstan, which is a host to a 30km long
Dzharyk-Taisogan cluster of copper-polymetallic occurrences. I am pleased to
report that work on the Balkhash Project is continuing and in March 2014 the
Company entered into the Balkhash Agreement (defined below) to enable further
exploration work, including a 2,000 metre drilling programme, concluding in July
2014, which will enable the Company to establish a better understanding of the
mineral potential of the Balkhash Project.
During 2013, the Company undertook some key steps to achieve a key objective of
preserving and improving its cash resources as a result of which I am pleased to
report that there was an increase of $1.5 million in the Company's cash position
to $11.3 million as at December 31, 2013. The increase was primarily due to the
Company concluding the Subscription (as defined below) with Gold Fields (defined
below) and the receipt of gross proceeds of CAD$10 million from Gold Fields. In
addition, during 2013 the Company reviewed its cost base and took a number of
steps to reduce expenditures, which included a reduction of non-essential staff
at the Karchiga Project and at its London corporate head office. I believe the
impact of this has been to put the Company in a relatively strong cash position
within the junior exploration sector where conditions for raising finance remain
very challenging.
The Company reported a net loss for 2013 of $5.8 million, compared to a net loss
for 2012 of $2.4 million, which included an after tax net gain on the sale of
the Company's 40% interest in the Talas Project (as defined below) of $7.6
million. Excluding this gain, the comparative overall loss for 2012 was $10
million, which when compared to 2013 represents a reduction of $4.2 million.
Such reduction in losses was a result of the positive actions to reduce
expenditures at all levels, as discussed above and will assist the Company in
preserving its current cash balance.
In relation to the Company's asset held for sale, the Akdjol-Tokhtazan Project
(defined below), following the termination of the exclusivity agreement with
David-Invest (defined below) in January 2014 and subsequently the Potential
Buyers in February 2014, the Company has continued to discuss the potential sale
of the project with the Potential Buyers (as defined below) on a non exclusive
basis as well as other interested parties.
I and the Board of Directors were disappointed that the Company was not able to
progress the Karchiga Project and recognise that shareholders will have been
frustrated by the performance of the share price during the year. Together with
my fellow directors I would like to reassure shareholders that Orsu remains
committed to securing the financing required for the Karchiga Project as well as
continuing an exploration programme at the Balkhash Project.
Whilst 2013 has been a challenging year I would like to thank the staff and
management of Orsu for their continued hard work and to extend our thanks to
shareholders for their continued support as we look forward to 2014.
Dr Sergey V Kurzin, Executive Chairman
March 24, 2014
OPERATIONAL REVIEW
The Company's principal and most advanced project is the property in 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 March 2012, the Company filed a
NI 43-101 feasibility study report (the "Karchiga Definitive Feasibility Study
Report") which showed an initial capital expenditure requirement of $115 million
for the construction of a mine and processing facility at the Karchiga Project.
In July 2012, to assist the Company in arranging finance for such expenditures,
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). The Company is
currently seeking to secure the remaining finance required, primarily in the
form of secured debt but also from other sources, for the construction of mine
and processing facilities at the Karchiga Project.
As part of the objective to acquire new exploration licences in Kazakhstan, in
March 2014, the Company entered into a new exclusivity agreement (the "Balkhash
Agreement"), superseding the previously announced agreements made in November
2012, April 2013 and September 2013, with Asem Tas LLC ("Asem Tas"), a privately
owned Kazakh registered company and holder of a licence area with initial size
of approximately 6,000km2 in Eastern Kazakhstan, which is host to a 30km long
Dzharyk-Taisogan cluster of copper-polymetallic occurrences (the "Balkhash
Project"). Under the Balkhash Agreement, the Company agreed to fund further
exploration work of up to $0.5 million. In return the Company has the exclusive
right, for a period ending in July 2014 (the "Exclusivity Period"), and, subject
to certain conditions and terms, to acquire an effective 55% interest in the
Balkhash Project (see "Operational Review - Balkhash Project, Kazakhstan" of the
Company's MD&A for full details).
The Company's exploration interest in Kyrgyzstan consists of the Akdjol and
Tokhtazan exploration licenses (or the "Akdjol-Tokhtazan Project") located in
the Jebal-Abad Oblast, western Kyrgyzstan. In 2011, the Company determined the
Akdjol-Tokhtazan Project to be a non core asset, which is available for sale
(see section entitled "Operational Review - Akdjol-Tokhtazan Project,
Kyrgyzstan" for details). In the event of the sale of the Akdjol-Tokhtazan
Project the Company will no longer have any exploration interests in Kyrgyzstan.
The Company has continued to use, and will continue to use, its current working
capital resources to satisfy the Company's 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.
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.
FINANCIAL RESULTS FOR THE YEAR ENDED DECEMEBER 31, 2013
For the year ended December 31, 2013 the Company reported a net loss of $5.8
million, compared to a net loss of $2.4 million for the year ended December 31,
2012.
In July 2013, following the completion of the Subscription the Company received
$9.6 million (CAD$10 million).
During 2013, the Company continued to seek to bridge the financing requirement
in order to secure project finance for the construction of a mine and processing
facility at the Karchiga Project. At the same time in order to preserve the
Company's available cash surplus by minimising expenditures the Company took a
number of steps which included reducing the headcount at the Karchiga Project
and the corporate head office. During the year ended December 31, 2013
capitalised development expenditure in relation to the Karchiga project was $1.5
million ($2.3 million for the year ended December 31, 2012) and deferred finance
costs of $113,000 ($939,000 for the year ended December 31, 2012).
As at December 31, 2013 the Company had net assets of $26.4 million ($29.8
million as at December 31, 2012) of which $11.3 million was cash and cash
equivalents ($9.8 million as at December 31, 2012).
The net loss for 2013 of $5.8 million consisted of: administrative costs of $3.4
million, legal and professional costs of $0.8 million, exploration costs of $1.6
million and a realized loss of $0.5 million in relation to a derivative
receivable following the completion of the Subscription partially offset by an
unrealized derivative gain in relation to the Warrants issued to Gold Fields of
$0.3 million, foreign exchange gains of $0.1 million, net finance income of
$77,000 and a net gain of $53,000 from the disposal group asset held for sale.
The Company's cash and cash equivalents as at December 31, 2013 were $11.3
million compared to $9.8 million as at December 31, 2012, representing an
increase in cash flow of $1.5 million. The increase was due to the receipt of
$9.6 million following the completion of the Subscription in July 2013 which was
partially offset by expenditures during the year in relation to corporate and
exploration costs of $5.5 million, a decrease in working capital of $1.0
million, property, capital expenditures in relation to plant and equipment of
$1.5 million and deferred finance costs of $0.1 million in relation to project
debt finance for the Karchiga Project.
Derivative financial instruments
As at December 31, 2013, the Company's derivative instruments consist of a
derivative liability in relation to the Warrants issued to Gold Fields pursuant
to the Subscription and previously, prior to the completion of the Subscription,
a derivative receivable.
In 2012 the Company sold its 40% interest in a property in northwest Kyrgyzstan
(the "Talas Project") to 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. Completion of the Subscription was conditional on the Company
obtaining the Kazakh Formal Waiver and the Company considered the Subscription
to be a derivative receivable until completion of the Subscription.
a) Derivative receivable
In July 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 subsequently received in cash the gross proceeds
from the Subscription of CAD$10 million, realizing $9.6 million and a further
CAD$35,446 accumulated interest.
The net loss on the completion of the Subscription as at December 31, 2013 is
shown below:
$000
CAD$10 million cash proceeds received 9,635
Less:
Fair value of shares issued on July 25, 2013 (2,431)
Fair value of warrants issued on July 25, 2013 (440)
------------
(2,871)
Less:
Fair value of derivative receivable as at December
31, 2012 (7,270)
-----------
Loss on derivative receivable (506)
-----------
-----------
b) Derivative warrant liability
The Company's derivative share warrant liability consists of 12.5 million
Warrants issued to Gold Fields pursuant to the Subscription. Prior to the
Warrants being issued to Gold Fields the fair value of the Warrants was measured
and netted off against the derivative receivable. Each Warrant is exercisable
over a period of three years from the date of issue to acquire one Common Share
of the Company at a price of CAD$0.50.
The carrying value of the derivative warrant liability as at December 31, 2013
is shown below:
$000
Fair value of Warrants issued to Gold Fields (440)
Derivative gain on fair value measurement 280
---------------
Derivative warrant liability as at December 31, 2013 (160)
Liquidity and capital resources
As at December 31, 2013 the Company's main source of liquidity was unrestricted
cash and cash equivalents of $11.3 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 December 31, 2013 the Company's consolidated
working capital was $11.5 million (compared with a consolidated working capital
of $9.3 million as at December 31, 2012).
The Company's working capital needs as at December 31, 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 2014, 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 $11.3 million
as at December 31, 2013 and potential net proceeds, if any, from the sale of the
Akdjol-Tokhtazan Project. In the Company's view, the consolidated working
capital as at December 31, 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 CAPEX of $115
million for which the Company will be required to raise additional financing in
the future. If the Company secures the required debt financing on acceptable
commercial terms then it may also apply a proportion of its available
unrestricted cash and if any, from the sale of the Akdjol-Tokhtazan Project,
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 "Risks and
Uncertainties" in the Company's MD&A.
Consolidated statements of net loss and comprehensive loss (Audited)
(Prepared in accordance with IFRS)
----------------------------------------------------------------------------
2013 2012
$000 $000
Operating expenses
Administration (3,396) (4,171)
Legal and professional (796) (1,411)
Exploration (1,580) (1,618)
Stock based compensation (6) (127)
Stock based compensation - non employees - (7)
Foreign exchange gains 88 102
Net gain/ (loss) from disposal group asset held for
sale 53 (1,733)
------------------------
(5,637) (8,965)
Unrealized gain on share warrant liability 280 -
Gain on sale of Talas Project - 7,820
Loss on derivative receivable (506) (368)
Company's share of Talas Project losses - (783)
Net of finance income less finance expense 77 47
------------------------
Net loss for the year before income tax (5,786) (2,249)
Tax charge for the year - (195)
------------------------
Net loss and comprehensive loss (5,786) (2,444)
------------------------
------------------------
Net loss attributable to:
Owners of the parent (5,733) (2,350)
Non-controlling interest (53) (94)
------------------------
(5,786) (2,444)
------------------------
------------------------
Loss per share
Basic $(0.03) $(0.02)
Diluted $(0.03) $(0.02)
Weighted average number of common shares (in
thousands) 168,655 157,696
Consolidated Balance Sheets (Audited)
(Prepared in accordance with IFRS)
----------------------------------------------------------------------------
2013 2012
Assets $000 $000
Current assets
Cash and cash equivalents 11,342 9,771
Prepaid and receivables 807 870
Assets of Akdjol-Tokhtazan Project held for sale 4,578 4,508
Derivative receivable - 7,270
------------------------
16,727 22,419
Non-current assets
Deferred finance costs 1,052 939
Property, plant and equipment 8,414 7,076
Other assets 1,212 879
------------------------
10,678 8,894
------------------------
Total assets 27,405 31,313
------------------------
------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 622 1,360
Liabilities of Akdjol-Tokhtazan Project held for
sale 99 80
------------------------
721 1,440
Non-current liabilities
Share warrant liability 160 -
Other liabilities 120 120
------------------------
1,001 1,560
Equity
Share capital 382,576 380,145
Share purchase options 5,687 5,887
Contributed surplus 28,474 28,268
Non-controlling interest (401) (348)
Deficit (389,932) (384,199)
------------------------
26,404 29,753
------------------------
Total equity and liabilities 27,405 31,313
------------------------
------------------------
Consolidated Statements of Cash Flows (Audited)
(Prepared in accordance with IFRS)
----------------------------------------------------------------------------
2013 2012
$000 $000
Cash flows used by operating activities
Net loss and comprehensive loss for the year (5,786) (2,444)
Items not affecting cash:
Depreciation 134 103
Unrealized derivative gain on share warrant
liability (280) -
Loss on derivative receivable 506 368
Share-based payments 6 134
Foreign exchange gains (86) (33)
Write off fixed assets 7 -
Company share of Talas Project losses - 783
Gain on sale of investment in Talas Project - (7,820)
Tax charge on sale of Talas Project - 195
Impairment of asset held for sale - 1,331
------------------------
(5,499) (7,383)
Changes in non-cash working capital:
Accounts receivable and other assets (374) (75)
Accounts payable and accrued liabilities (700) 722
------------------------
Net cash used by operating activities (6,573) (6,736)
Cash flows (used by)/ from investing activities
Expenditures on property, plant and equipment (1,473) (2,421)
Cash proceeds of CAD$10 million from Subscription 9,635 -
Funding of investment in Talas Project - (288)
Cash proceeds from sale of Talas Project, net of
legal and professional fees - 9,798
------------------------
Net cash from investing activities 8,162 7,089
Cash flows used for financing activities
Deferred finance costs (113) (939)
------------------------
Net cash used for financing activities (113) (939)
------------------------
Net increase/ (decrease) in cash and cash
equivalents in the year 1,476 (586)
------------------------
Cash and cash equivalents - Beginning of the year 9,800 10,341
Exchange gains on cash and cash equivalents 67 45
------------------------
Cash and cash equivalents - End of the year 11,343 9,800
------------------------
------------------------
Cash and cash equivalents per the consolidated
balance sheets 11,342 9,771
Included in the Akdjol-Tokhtazan Project classified
held for sale 1 29
FORWARD-LOOKING INFORMATION
This press release and the Company's MD&A contain or refer 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, development and financing for, 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 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" 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 / Neil Elliot
+44 (0) 20 7523 8000
Vanguard Shareholder Solutions
+1 604 608 0824
Vortex Metals (TSXV:VMS)
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