Orsu Metals Corporation (CVE:OSU) announced Monday two concurrent financings to advance its flagship Sergeevskoe project in Russia to raise over C$1.4 million in total, which includes investments from two of the firm's directors and legendary speculator and founder of Casey Research, Doug Casey.
Casey took part in a placing of 1.4 million units at C$0.2385 each to raise C$333,900, with each unit comprising one warrant, entitling the holder to buy a company share for $0.36 for three years.
The second is a private placing of more than 4.18 million special warrants of Orsu at C$0.265 each to raise C$1,110,075 from two company directors.
Managing director Sergei Stefanovich is subscribing for C$990,075 in the special warrant financing, while Sergey Kurzin, executive chairman, is subscribing to the tune of C$120,000.
All in all, the two financings, which are subject to TSX Venture approval, will raise an aggregate of C$1,443,975.
Stefanovich currently owns or controls over 7.1 million company shares, representing 19.4% of the capital, before the closing of the unit financing of the conversion of all special warrants.
On conversion of the special warrant into shares, Stefanovich would own or control over 10.8 million shares, or 25.7% of the firm.
Orsu said it would then arrange to hold a special shareholder meeting to approve a change of control resolution to allow Stefanovich to become a controlling shareholder of the company.
The firm owns 905 of the Sergeevskoe gold project, which lies in the Mogocha district of the Zabaikal’skiy region of the Russian Federation.
The license covers an area of 7.6 square kilometres (sq km) and lies around 40 km southwest of the town of Mogocha. The district hosts a large railway station on the Trans-Siberian Railway which runs within around 35 km of the license area. It is also 8 km from a motorway.
Contact the author at [email protected]