Orsu Metals Corporation has, pursuant to an April 11, 2016 agreement for the sale and purchase the Company’s interest in GRK MLD LLP to Karasat Trading FZE, conditionally transferred its participation interest in MLD to Karasat. MLD is the holder of the Karchiga Project, Kazakhstan, exploration and production contract.
Karasat is purchasing all of Orsu’s 94.75% indirect interest in MLD for USD 230 and all the inter-company debt owed by MLD to Orsu and Lero Gold Corp., a wholly owned subsidiary of Orsu, for USD 7,749,770 for an aggregate purchase price of USD 7,750,000. Orsu was paid a USD 100,000 deposit in May 2016 and is owed the balance of USD 7,650,000.
The Transfer took place in Almaty, Kazakhstan on January 25, 2017. Orsu transferred the Interest and the Transfer is now expected to be registered with the Kazakhstan authorities. The purchase price for the Interest shall be paid by Karasat after the registration of the Transfer with the Kazakhstan authorities.
The assignment deed evidencing the transfer of the inter-company debt will become effective upon receipt of the USD 7,650,000 by Orsu. Receipt is expected not later than February 15, 2017.
The sale was approved by the Company’s shareholders at a meeting held June 23, 2016 and the terms of the sale was in the Company’s management information circular dated May 19, 2016.