The Company’s interest in the Licences was classified as held for sale in 2011 following the Board’s decision to actively market the asset and focus on developing its Karchiga Project, the Company’s principal copper asset in north-eastern Kazakhstan.
The key terms of the New Exclusivity Agreement are as follows:
in return for a non-refundable deposit of $300,000, which has been paid, the Potential Buyers have been granted an exclusive right to purchase Tournon or OIK until July 1, 2014 (the "Exclusivity Period");
David-Invest will fund the exploration programme for the 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 option to purchase the entire share capital of Tournon or OIK at any time on or before the expiry of the Exclusivity Period for a consideration of US$4.5 million (including the deposit), which total amount is unchanged from the previous exclusivity agreements.
Other than as described above, there have been no significant changes to the terms of the previous exclusivity agreements signed in 2012 and 2013.
The carrying value of the Licences as at December 31, 2013 was US$4.48 million and the net gain attributable to the Licences for the year ended December 31, 2013 was US$53,000.
The Company will apply any proceeds from a sale to working capital and identification of other early stage exploration opportunities consistent with the Company’s strategy.
