Orsu Signs Non-Binding Term Sheet With RK Mine Finance for Up to US$25 Million
November 19 2012 - 2:00AM
Marketwired
Orsu Metals Corporation, the London-based dual listed
(TSX:OSU)(AIM:OSU) base and precious metals exploration and
development company, today announces that, further to its press
release dated July 31, 2012, it has signed a non-binding term sheet
with RK Mine Finance (Master) Fund II LP ("RK Mine Finance"), a
part of the Red Kite Group ("Red Kite"). The principal terms
include, subject to certain conditions:
a. Provision of sub-ordinated secured debt finance facilities of up to $25
million for the Company's Karchiga Project in Kazakhstan (see below),
comprising a $15 million sub-ordinated loan and a sub-ordinated standby
facility of up to $10 million, and
b. An off-take agreement for 100% of any future annual production of copper
concentrate at the Karchiga Project, for the life of the mine.
Dr Sergey V Kurzin, Executive Chairman of Orsu, commented:
"Signing of the terms with RK Mine Finance is another significant
step towards the Company's goal of starting construction at
Karchiga. If completed, the RK Mine Finance debt offering, when
added to the funds from the sale of Talas to Gold Fields and the
potential proceeds from the $90 million senior debt facility, in
respect of which Barclays and UniCredit have been appointed to
arrange, completes the pre-production finance package required to
achieve this."
The execution of a definitive debt finance facility and off-take
agreement with RK Mine Finance (a "Definitive Agreement") is
subject to a number of conditions including completion of detailed
due diligence by RK Mine Finance, finalization of definitive terms,
Orsu and RK Mine Finance obtaining all relevant internal approvals
and other conditions consistent with a transaction of this nature.
There is no guarantee a Definitive Agreement will be executed, or
any funds advanced by RK Mine Finance to Orsu, on the terms
currently contemplated, or at all.
About Orsu Metals Corp.
Orsu holds a 94.75% interest in a copper deposit license located
in the Kurchumskiy District of the Eastern Kazakhstan Oblast,
approximately 250km south-east of Ust-Kamenogorsk, and
approximately 40 km from the Chinese border (otherwise known as the
"Karchiga Project"). Since the filing of a NI 43-101 technical
feasibility study in March 2012, available on the Company's website
and on SEDAR at www.sedar.com, Orsu has been seeking to secure
finance for the construction of a mine and processing facility at
the Karchiga Project, with an aim to commence construction in April
2013. Orsu is managed by an experienced team of mining
professionals with extensive construction, operating and financial
experience.
About Red Kite
RK Mine Finance provides mining companies with project financing
and metal off-take agreements for initiation or expansion of mine
production and is part of the Red Kite group. Red Kite operates
across the global metals industry from offices in Bermuda, Denver,
Hong Kong, London, New York, Shanghai and Sydney. Investors in Red
Kite funds include college endowments, foundations, family offices,
pensions and other institutional investors.
FORWARD LOOKING INFORMATION
This press release contains forward-looking information which is
not comprised of historical facts. Forward-looking information
involves risks, uncertainties and other factors that could cause
actual events, results, performance and opportunities to differ
materially from those expressed or implied by such forward-looking
information. Forward-looking information contained in this press
release relates, but may not be limited, to the anticipated
arranging of project finance facilities by RK Mine Finance to Orsu
and the entering into an off-take agreement, as well as the
anticipated terms thereof, potential construction at, and
production from, the Karchiga Project (as well as the timing with
respect thereto and the potential proceeds from a debt facility to
be arranged by Barclays and UniCredit and the sufficiency thereof
along with proceeds from any debt facilities from any debt
facilities by RK Mine Finance with respect to development of the
Karchiga Project.
Factors that could cause actual results to differ materially
from those described in such forward-looking information include,
but are not limited to, the inability of RK Mine Finance and/or
Barclays and UniCredit to arrange, or obtain necessary approvals
for, the project finance facilities or the failure of the proposed
parties thereto to agree to the terms thereof, risks normally
incidental to the development of mineral properties and operating
hazards, the inability to obtain, maintain, renew and/or extend
required licences, 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 final approval from the local Kazakh authorities
for, among other things, the construction of a mine and related
processing facilities at the Karchiga Project, and other risks
relating to the laws, political environment or regulatory framework
in Kazakhstan, as well as certain other risks set out in the
Company's public documents, including its annual information form
dated March 30, 2012, filed under the Company's profile on SEDAR at
www.sedar.com.
The forward-looking information in this press release reflects
the current expectations, assumptions and/or beliefs of the Company
based on information currently available to the Company. In
connection with the forward-looking information contained in this
press release, the Company has made assumptions about: the ability
of RK Mine Finance's and/or Barclays and UniCredit to arrange for
project finance facilities on terms acceptable to the Company; the
Company's business, the economy and the mineral resources
development and extraction industry in general; the Company's
ability to obtain, maintain, renew and/or extend required permits,
licences, authorisations and/or approvals from the appropriate
regulatory authorities, including the final approval required from
the local Kazakh authorities to develop the Karchiga Project as
anticipated; and the ability to continue to obtain qualified staff
and equipment in a timely and cost-efficient manner to meet
demands. The Company has also assumed that no significant events
occur outside of the Company's normal course of business. 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.
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.
Contacts: Orsu Metals Corporation Kevin Denham Chief Financial
Officer and Company Secretary +44 (0) 20 7518 3999
www.orsumetals.com Canaccord Genuity Limited Andrew Chubb +44 (0)
20 7523 8000 Vanguard Shareholder Solutions +1 604 608 0824 RK Mine
Finance Jeff Kechejian +1 (212) 596-3474