Last checked at 8 Mar 2019 07:00
Oriole Resources PLC
('Oriole Resources' or 'the Company' or 'the Group')
Royalty Update for Muratdere Project, Turkey
Oriole Resources, the AIM-quoted exploration company operating in Africa and Europe, announces that is has been diluted to below 10% at the Muratdere copper-gold project in Turkey (the 'Project'), following further investment in the Project by its joint-venture partner Lodos Maden Yatırım Sanayii ve Ticaret A.Ş. ('Lodos'). As per the terms of the joint venture, the Company's remaining equity interest will shortly be converted to a 1.2% post Turkish tax net smelter returns royalty. Lodos is progressing with the Project in order to secure an approved Environmental Impact Assessment ('EIA').
Highlights
- Oriole diluted to below 10% interest at Muratdere copper-gold project;
- Lodos to exercise option to convert Oriole to 1.2% net smelter return ('NSR') royalty on future production;
- Lodos progressing the Project to secure an approved EIA.
Oriole Resources CEO, Tim Livesey, said: "We are pleased by the progress Lodos is making at the Muratdere project and we look forward to a positive response to their permitting submittal, taking us one step closer to realising value from this legacy asset.
In addition to the royalty with Lodos, we have several other assets in Turkey which we continue to monitor and support, with a view to future value creation for Oriole."
Further Information
In 2012, the Company received US$1.7m from the sale of a 51% interest in its wholly-owned Muratdere copper-molybdenum-gold porphyry deposit to Lodos, the wholly-owned mining investment company of Pragma Finansal Danışmanlık Ticaret A.Ş., a leading private Turkish financial institution and investment company (announcement dated 20 December 2012). Further payments by Lodos of US$0.5m and the completion of feasibility study saw them vest at 70% in the Project during Q1-2015 (announcement dated 11 March 2015). Following the Company's decision not to commit further funds to the Project (announcements dated 29 February 2016 and 1 February 2018), Oriole has continued to be diluted as Lodos has made further payments with a focus on completing an EIA programme.
Following this further investment, Lodos has now confirmed that the Company's interest in the Project has been diluted to below 10% and Lodos intends to exercise its option to convert Oriole to 1.2% net smelter returns ('NSR') royalty on future production.. The necessary legal documents to facilitate this are currently being finalised and a further announcement will be made in due course.
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For further information please visit www.orioleresources.com, @OrioleResources on Twitter, or contact:
Oriole Resources PLC Tim Livesey / Bob Smeeton / Claire Bay
| Tel: +44 (0)20 7830 9650 |
Camarco (IR/PR contact) Gordon Poole / Nick Hennis
| Tel: +44 (0)20 3781 8330 |
Grant Thornton UK LLP Samantha Harrison / Ben Roberts / Niall McDonald
| Tel: +44 (0)20 7383 5100 |
Hannam & Partners Neil Passmore / Andrew Chubb
| Tel: +44 (0)20 7907 8500 |
Turner Pope Investments (TPI) Ltd Ben Turner / James Pope / Andy Thacker | Tel: +44 (0)2036214120 |
Notes to Editors:
Oriole Resources PLC is an AIM-listed exploration company, operating in Africa and Europe. It is focused on early-stage exploration in Cameroon and the more advanced Dalafin gold project in Senegal, where IAMGOLD has the option to spend US$8m to earn a 70% interest. The Company has a number of interests and royalties in companies operating throughout Africa and Turkey and is assessing new opportunities in both regions.