Orsu Metals has entered into an agreement to increase its share in the Karchiga massive sulphide deposit in north-east Kazakhstan to 94.75%.
The sale and purchase agreement will result in Orsu acquiring a further 24.73% interest in Karchiga through the purchase of the remaining shares of Eildon Enterprises, which owns a 94.75% interest in GRK MLD LLC.
GRK MLD is the holder of the exploration and production contract relating to the Karchiga volcanogenic massive sulphide deposit.
Orsu currently owns 73.9% of Eildon, which represents 70.02% in GRK MLD. Following completion of the sale, Orsu will own 100% of Eildon, representing 94.75% of GRK MLD and its interest in Karchiga.
The company anticipates completing the acquisition during the third quarter of 2010. The purchase price of the remaining 26.1% interest in Eildon is US$6,187,500.
Orsu’s executive chairman Sergey V Kurzin says: "Consolidation of the ownership of the Karchiga Project, the most advanced project of the company, reflects the company's confidence in the recently completed mineral resource calculation and independent audit of the mineral resources for the deposit.
“The company intends to fast-track the Karchiga project towards the completion of a feasibility study by early 2011."
Karchiga is within the mid-Palaeozoic Rudny Altai terrain which hosts numerous world-class volcanogenic massive sulphide deposits, including the Leninogorsk, Zyryanovsk, and Maleevskoye deposits.
An updated NI 43-101 mineral resource estimate shows indicated resources of 8.49 million tonnes @ 1.95% copper and inferred resources of 1.79 million tonnes @ 1.62% copper.
www.orsumetals.com

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