Oriole Resources PLC (LON:ORR), the AIM quoted gold exploration and development company focused on Central and West Africa, has reported that an agreement has been reached with Ardent Metals LLC-FZ, a company incorporated in Dubai, for the sale of the Company’s 1.2% Net Smelter Return royalty in the Muratdere project in Turkey, for a total of US$1.2 million.
Highlights
· Ardent will pay Oriole US$1.2 million in return for the Royalty, with payment being made in three tranches;
· US$400,000 of the consideration has already been received and the title to the Royalty has been transferred to Ardent;
· The balance of the consideration is receivable in two further tranches, US$400,000 by 19 March 2027 and US$400,000 by 19 September 2027; and
· The title to the Royalty automatically reverts back to Oriole, in full, in the event of delayed payment of either of these two outstanding instalments.
Chief Executive Officer of Oriole Resources, Martin Rosser, said: “We are pleased to announce the disposal of our non-core Muratdere royalty as the sale provides significant cash proceeds which can be devoted to funding the Company’s important activities in Cameroon.”
Further Details
The Company was operator at the Project between 2005 and 2011 and, during that period, delivered a JORC-compliant Inferred Resource of 51 million tonnes (“Mt”) grading 0.36% copper (“Cu”), 0.12 g/t gold (“Au”), 2.40 g/t silver (“Ag”), 0.0125% molybdenum (“Mo”) and 0.34 parts per million rhenium (‘Re’) (announcement dated 15 June 2011). This Resource was primarily defined within a 2km-long section of a 4km-long porphyry system and remained open along strike and at depth.
In 2012, the Company signed a joint-venture agreement whereby it sold a 51% interest in the Project to Lodos in return for US$1.7m (announcement dated 30 July 2012). Further investment by Lodos, including the completion of 7,900m of diamond drilling, the payment of US$500,000 to the Company and completion of a Feasibility Study in 2015, saw it earn a 70% interest in Muratdere and commence the environmental impact assessment permitting process (announcement dated 11 March 2015). The Feasibility Study envisaged the mining and processing of a total of 16Mt of ore with a mean grade of 0.52% Cu, 0.0125% Mo, 0.11 g/t Au, and 2.40 g/t Ag over a mine life of 10 years which, on the basis of open-pit mining and ore concentration by a state-of-the-art flotation facility (designed with zero discharge), would produce a concentrate with an average grade of 33.6% Cu.
In 2019, following continued investment in the Project by Lodos, Oriole’s prior equity interest was converted to a 1.2% post-tax NSR royalty in accordance with the terms of the joint venture.
The Company today reports that is has sold this Royalty to Ardent for a total consideration of US$1.2 million, to be paid in three tranches of US$400,000 each. The first tranche has been received and the Company’s title in the Royalty has been transferred to Ardent. The remaining two tranches are due by 19 March 2027 and 19 September 2027 respectively.
