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Orsu finally takes Russian stake

Orsu Metals (CN:OSU) has been able to make a long-awaited acquisition of 90% of a Russian gold project, on amended terms after selling its Kazakhstan project for less than expected.
Orsu finally takes Russian stake Orsu finally takes Russian stake Orsu finally takes Russian stake Orsu finally takes Russian stake Orsu finally takes Russian stake

Canadian company acquires 90% of Russian project on amended terms

Staff reporter

Orsu executive chairman Sergey Kurzin said he was pleased with the "spirit of cooperation and confidence" during the Sergeevskoe negotiations.

Orsu had acquired a 30% stake in the Sergeevskoe gold project in May and was going to buy the remaining 70% stake for €700 (US$811) and US$420,000 cash, provided it sold its Karchiga project in Kazakhstan before September 30 for $7.75 million.

After an initial Karchiga sale fell through in February, Orsu was able to sell its 94.75% interest for proceeds of $5.9 million last month, triggering negotiations for an amended Russian agreement.

Under the new terms, Orsu has acquired 90% of Sergeevskoe for €600 and $420,000 cash and an NSR royalty of 0.75% capped at $7.5 million.

Orsu will carry the sellers' 10% interest until completion of a definitive feasibility study, when the 10% interest will become a participating interest subject to dilution.

Kurzin said initial trenching results from Sergeevskoe in June indicated the presence of "well-mineralised high-grade gold pods," with highlights including 1m at 335g/t within 8m at 48.56g/t.

More exploration results are due within weeks.

Orsu shares rose 10% following the announcement.