Orsu Metals Corporation has conditionally transferred its participation interest in GRK MLD LLP to Karasat Trading FZE. MLD is the holder of the exploration and production contract for the Karchiga project in Kazakhstan.
The transfer forms part of the April 11, 2016 agreement for the sale of Orsu’s interest in MLD.
Karasat is purchasing all of Orsu’s 94.75% indirect interest in MLD for US$230 and all the inter-company debt owed by MLD to Orsu and Lero Gold Corp, a wholly-owned subsidiary of Orsu, for US$7,749,770 for an aggregate purchase price of US$7.75 million. Orsu was paid a US$100,000 deposit in May 2016 and is owed the balance of US$7.65 million.
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 US$7.65 million by Orsu. Receipt is expected not later than February 15, 2017.