8 Mar 2019 07:00
Oriole Resources PLCÂ
('Oriole Resources' or 'the Company' or 'the Group')
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Royalty Update for Muratdere Project, Turkey
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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').
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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.
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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.
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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."
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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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** ENDS **
For further information please visit www.orioleresources.com, @OrioleResources on Twitter, or contact:
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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 |
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Notes to Editors:
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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.