$5m potential buyer7 Oct 2015 12:15
A new conditional exclusivity agreement with David-Invest LLP, a Kyrgyz registered company, and a related company, David Way Limited, a Hong Kong registered
company with a view to the potential sale of its Akdjol and Tokhtazan gold exploration
licences in Kyrgyzstan.
-- the Potential Buyers have been granted an exclusive right to purchase
the Akdjol-Tokhtazan Project until December 31, 2015 (the "Exclusivity
Period") conditional upon the Potential Buyers continuing to fund the
costs of maintaining the licence;
-- Orsu has the right to terminate the agreement at any time, in the event of non-fulfilment of the obligation to fund the costs of maintaining the licence.
-- the Potential Buyers have the option to purchase the Akdjol-Tokhtazan
Project at any time on or before the expiry of the Exclusivity Period
for a consideration of US$5.0 million. The previous non-refundable
deposits of US$400,000 received by the Company during 2014, will be
applied against the consideration in the event of any sale;
-- the Potential Buyers will fund the exploration programme for the Akdjol-
Tokhtazan Project licences (which are due to expire on December 31,
2015) on a non-refundable basis for the Exclusivity Period; and
-- the Potential Buyers have the right to terminate the Exclusivity
Agreement at any time.
Current mcap £3m
Only 183m shares in issue
As at June 30, 2015 the Company had cash and cash equivalents of $6.3 million and estimates to have sufficient working capital to fund it exploration and administration obligations for the next 12 months.
Net assets around $19.6m
Currently well undervalued!!
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