Oriole Resources PLC - West Africa-focused minerals explorer - Says joint venture partner Bati Toroslar Madencilik Sanayi ve Ticaret Ltd failed to make USD30,000 initial payment in relation to the sale of the Hasancelebi and Dogala mining royalties in Turkey. States the failure by Bati Toroslar to make the payment gives Oriole the right to cancel the sale agreement.
In 2019, Oriole signed a USD1.38 million exploration agreement with Bati Toroslar for the development of its early-stage Hasancelebi and DoGala gold projects. Under the deal, the licences were transferred to Bati Toroslar whilst Oriole retained its right to a 1.5% royalty on any future precious metals production at the projects as well as a 5.0% royalty on the future production of any other metals or industrial raw minerals.
In July, Oriole said that it has signed a USD250,000 sale agreement with Bati following Bati's exercise of its right of first refusal to purchase the Hasancelebi and Dogala royalties by matching a third-party offer. Oriole was to receive the first tranche of USD30,000 in cash within seven days, with the second tranche of USD220,000 in cash due upon initiation of project construction activities at either Hasancelebi or Dogala.
"As part of our asset realisation strategy, we received an offer from a third party that triggered Bati Toroslar's right of first refusal. Unfortunately, despite exercising this right, Bati Toroslar has failed to make payment under the terms of the sale agreement and the board now has the right to cancel the sale. Cancellation of the sale agreement would also remove Bati Toroslar's right of first refusal on the royalties should the company agree a new third party offer, said Oriole Chief Financial Officer Bob Smeeton.
"Given the substantial gold price rise since this deal was initially agreed with the third party, we are reviewing all available options," he added.
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By Ife Taiwo; ifetaiwo@alliancenews.com
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