South African mining company Gold Fields will acquire the remaining 40% interest in the Talas gold-copper-molybdenum project in the Kyrgyz Republic from UK-based Orsu Metals.
After paying $10m to Orsu, Gold Fields will own a 100% interest in the project, which was developed by both companies under a joint venture agreement.
Orsu Metals will utilise the proceeds from the sale and subscription of the stake to bring its Karchiga Volcanogenic Massive Sulphide copper project in north eastern Kazakhstan into production.
The company is in advanced negotiations with major banks to provide project finance for the Karchiga Project, principally in the form of secured debt.
Orsu executive chairman Sergey Kurzin said, "The proceeds of the sale and subscription will be used to fund Orsu’s equity portion of the capital expenditure necessary to start construction of the mine and processing facilities at the Karchiga Project during the second half of 2012 and advance Orsu towards its goal of becoming a copper producer in the strategically important region of north-eastern Kazakhstan."
Gold Fields will refund Orsu Metals’ aggregate contributions of $240,000 to the current Talas Project exploration programme.