Orsu Metals Corporation ("Orsu" or the "Company" or the "Group"), the dual listed (TSX: OSU; AIM: OSU) London-based precious and base metals exploration and development company today reports its unaudited results for the period ended March 31, 2010. All amounts are reported in United States Dollars unless otherwise indicated. Canadian Dollars are referred to herein as CAD$.
Interim Results for the Period Ended March 31, 2010 (Unaudited)
May 17, 2010
- February 2010 - Gold Fields Limited, through its subsidiary Gold Fields Orogen Holding BVI Limited ("Gold Fields"), completed the "First Phase" of the Talas Project joint venture in the Kyrgyz Republic, pursuant to which Gold Fields earned a 60% interest in the Talas joint venture company, Kami Associates Limited (the "Talas Joint Venture Company"), the Company's subsidiary and the 100% owner of Talas Copper Gold LLC ("TCG LLC"), the registered owner of the Talas Project, by funding exploration expenditures of CAD$10 million. Gold Fields subsequently notified the Company that it would not exercise the "Second Phase Option" to increase its interest in the Talas Joint Venture Company from 60% to 70% through the funding of additional exploration expenditures. As a result, the "Earning Period" under the joint venture agreement dated December 3, 2008, as amended on August 14, 2009, between the Company, Gold Fields, Lero, TCG LLC and the Talas Joint Venture Company (the "JV Agreement") was concluded and the Company retained a 40% interest in the Talas Joint Venture Company, subject to the terms and conditions of the JV Agreement.
- February 2010 - the Ontario Superior Court of Justice approved the settlement of the class action claim commenced against EMC and two of its officers in the Ontario Superior Court of Justice in June, 2008 (the "Class Action Claim") for CAD$2.2 million, to be shared equally between Orsu and its insurer. The settlement became effective on March 22, 2010 following the expiry of a 30-day appeal period with no appeals having been received by the Company. The Company and the other defendants retain the right to terminate the settlement agreement if too many class members opt out during the 60-day opt out period, which commenced on April 6, 2010. However, at this time, it is not expected that this right will need to be exercised. Under the terms of the settlement agreement, the Class Action Claim (including the predecessor of the Class Action Claim) will be dismissed.
- March 2010 - Orsu provided updated National Instrument 43-101 mineral resource estimates for the Karchiga Project and for its Taldybulak copper-gold-molybdenum porphyry deposit at the Talas Project.
- March 2010 - the Company filed a preliminary short form prospectus with the securities regulatory authorities in the provinces of British Columbia, Alberta, Manitoba and Ontario, Canada in connection with the proposed offering of units of securities of the Company to be led by Canaccord Financial Limited (now called Canaccord Genuity Corp. following a change of name on May 10, 2010) ("Canaccord") to raise gross proceeds of up to CAD$20 million.
POST QUARTER HIGHLIGHTS
- April 2010 - Orsu announced that the Akdjol and Tokhtazan licences, comprising the Tokhtazan Project, were extended by the Ministry of Natural Resources of the Kyrgyz Republic until December 31, 2012.
MANAGEMENT'S DISCUSSION AND ANALYSIS
- April 2010 - Orsu filed a final short form prospectus and completed a public offering of units of securities (the "Units"), pursuant to which the Company sold 112,000,000 Units at a price of CAD$0.25 per Unit (the "Offering Price") for gross proceeds of CAD$28,000,000 (the "Offering"). Each Unit consisted of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"), with each Warrant being exercisable to acquire one Common Share at a price of CAD$0.50 for a period of two years from the closing date of the Offering. Canaccord acted as sole manager and book runner for the Offering. The net proceeds of the Offering are expected to be used towards the maintenance of the Company's interests in, and for the further exploration and the development of, the Company's mineral properties in the Republic of Kazakhstan and the Kyrgyz Republic, to pursue future growth opportunities (which may include acquiring one or more additional assets), if and when such opportunities arise, and for general corporate and working capital purposes.
A full Management's Discussion and Analysis of the results for the period ended March 31, 2010 ("MD&A") and 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). These can also be obtained on application to the Company. The following information has been extracted from the MD&A and the Financials.
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