Last checked at 21 Nov 2019 07:30
Oriole Resources PLC
('Oriole Resources' or 'the Company' or 'the Group')
Muratdere Converts to a 1.2% NSR
Oriole Resources, the AIM-quoted exploration company operating in West Africa, is pleased to announce that it has concluded the conversion of its interest in the copper-molybdenum-gold deposit ('Muratdere') to a 1.2 per cent. ('%') post-tax net smelter return ('NSR') royalty.
Oriole Resources CFO, Bob Smeeton, said: "We are pleased with the progress our partner has made in moving Muratdere towards mine-development. The conversion of our interest to a 1.2% NSR royalty gives us a valuable and potentially saleable asset. We would anticipate the net smelter return to be approximately 90% of the estimated US$400 million gross metal revenues over the sixteen year mine life, making the 1.2% royalty a substantial asset for the Group."
Further Details
Further to its previous guidance (announcements dated 8 March 2019 and 29 October 2019), the Company has now executed share purchase and royalty agreements with its partner Lodos Maden Yatırım Sanayii ve Ticaret A.Ş. ('Lodos'), a wholly-owned mining investment company of Turkish investment company Pragma Finansal Danışmanlık Ticaret A.Ş.. As such, Oriole's prior equity interest has been converted to a 1.2% post-tax NSR royalty in accordance with the terms of the joint venture.
The Company had previously announced a positive Feasibility Study (announcement dated 11 March 2015) that was based on a 16 million tonne optimisation of a much larger underlying JORC-compliant inferred resource of 51 million tonnes comprising 186,000 tonnes copper, 204,296 ounces gold, 3.9 million ounces silver that remains open along strike and at depth (announcement dated 15 June 2011).
Over the sixteen-year mine life, the total metal produced in concentrate would be c.68,000 tonnes copper, c.32,000 ounces gold and c.955,000 ounces silver. At today's metal prices, expected gross metal revenues over the mine life could be in excess of US$400 million.
As previously announced, Lodos has continued to progress Muratdere towards mine-construction, Lodos has submitted an EIA and a decision is awaited. Subject to approval of the EIA, construction of the mine is expected to be completed within two years.
** ENDS **
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Following the publication of this announcement, this inside information is now considered to be in the public domain.
For further information please visit www.orioleresources.com, @OrioleResources on Twitter,
or contact:
Oriole Resources Plc | Tel: +44 (0)20 7830 9650 |
Tim Livesey / Bob Smeeton / Claire Bay | |
Blytheweigh (IR/PR Contact) | Tel: +44 (0)20 7138 3204 |
Tim Blythe / Megan Ray / Rachel Brooks | |
Grant Thornton UK LLP | Tel: +44 (0)20 7383 5100 |
Samantha Harrison / Ben Roberts / Niall McDonald | |
WH Ireland Adrian Hadden / Darshan Patel / Lydia Zychowska
| Tel: +44 (0)20 7220 1666 |
Notes to Editors:
Oriole Resources PLC is an AIM-quoted exploration company, focussed on West Africa. It is focused on early-stage exploration in Cameroon (Bibemi and Wapouzé projects) and the more advanced Dalafin gold project in Senegal, where IAMGOLD has the option to spend US$8m to earn a 70% interest. Year 1 commitments have been met at all three projects. The Company has several interests and royalties in companies operating throughout Africa and Turkey that could deliver future cash flow, and it continues to assess new opportunities in both regions.
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