Business
Letter of Intent Signed
Letter of Intent Signed.
About this update from Talisman Metals Plc
[{"type":"text","content":"\n Ovoca Resources plc\n \n\nOVOCA GOLD PLC\n\nOVOCA SIGNS HEADS OF AGREEMENT TO ACQUIRE 74 MILLION OUNCE SILVER DEPOSIT IN\nNORTH-EAST RUSSIA\n\nOvoca Gold plc, (\"Ovoca\" or \"the Company\") the London AIM (OVG.L) and Dublin IEX\n(OVX.IR) traded exploration company is pleased to announce that it has signed a\nheads of agreement to acquire a 74% controlling interest in CJSC Ayax\nProspectors Artel company (\"Ayax\"), a Russian company which owns the Goltsovoe\nsilver deposit in the Magadan oblast in Eastern Russia.\n\nSubject to satisfactory completion of additional due diligence over the next 3\nto 4 months, and any regulatory approvals required in Dublin and London, Ovoca\nwill acquire 74% of the equity in Ayax for 110 million Ovoca new ordinary shares\ntogether with a payment of $1m within six months of signing the acquisition\nagreement. Ovoca will also have the option at its sole discretion to acquire the\nremaining 26% of the equity of Ayax at any time between the first and second\nanniversary of the signing date. Under the heads of agreement Ayax will have the\nright to appoint three directors to the Ovoca Board upon completion of the\nacquisition agreement.\n\nOvoca has been in discussions with the shareholders of Ayax since early\nSeptember 2005 and, with the assistance of GBM Minerals Engineering Consultants\nLimited of the UK (\"GBM\"), has invested some 300 man days evaluating their\nGoltsovoe Silver project in Magadan. The Company has instructed DentonWildeSapte\nand Deloitte & Touché, who have completed preliminary legal and financial\nreviews of Ayax from their Moscow offices\n\nThe Goltsovoe deposit is located in the district of Omsukchan in the Magadan\nOblast. It is 69 kilometres from the regional administrative centre of Omsukchan\nand is accessed by a good all-weather road. A 110 kV power line and telephone\ncommunications run along the Magadan-Omsukchan highway. It is close to Bema Gold\nCorporation's Julietta Mine and near the famous Dukat silver deposit.\n\nOvoca and GBM have completed a study of the resources, mining methods, mineable\nreserves, processing and infrastructure as well as capital and operating costs\nestimates for a 260,000 tonne a year underground mine, with a 10 year mine life.\nConsiderable metallurgical testwork has already been completed by Ayax, and GBM\nhas carried out a detaile...