Oriole Resources PLC - Update on Turkish Operations
Update on Turkish Operations
- Year to date cashflows of approximately
£162,000from the Company's Turkish consultancy work have exceeded the Company's G&A in Turkeyduring the same period;
- Asset realisation continues with the recent
US$300,000sale of Karaağac net smelter returns ('NSR') royalty to local partner, Anadolu Export Maden Sanayi ve Ticaret LimitedŞirketi ('Anadolu');
- Discussions to recover an outstanding
US$425,000success-based payment at Karaağac have commenced;
- Initial instalment of
US$30,000now received from local partner, Bati Toroslar Madencilik Sanayi ve Ticaret Ltd.Ști ('Bati Toroslar') in respect of Hasançelebi and Doğala royalty sale agreement (announcements dated 30 July 2020and 10 August 2020);
- Company is well placed to attract new buyers for the remaining royalties, including the EIA-stage Muratdere copper-gold porphyry project, and to benefit from the recent rises in the gold and copper prices respectively;
- Positive cash flows have enabled the settlement of historic employment liabilities.
"Meanwhile, the significant efforts to realise value from the Turkish royalty portfolio has been met with modest success so far, following the recent withdrawal of a portfolio deal with a quoted royalty company after the right of first refusal ('ROFR') was exercised by some of our Turkish partners.
"The receipt of the initial instalment from
"We also note the recent rise in the copper price, and its significance in relation to our 1.2% post-tax NSR royalty at the Muratdere copper-molybdenum-gold deposit, as per our announcement dated
Despite in-country COVID-19 restrictions, the Company is pleased to report that its Turkish team has continued to operate as a consultancy business during 2020, generating consulting fees of approximately
As previously announced, the Company has been focused on monetising its non-core assets and, in particular, its royalty positions in
A similar sale in respect of the Company's royalties on the Hasançelebi and Doğala projects was announced on
Both of the above transactions were initiated following the receipt of an offer from a quoted third-party royalty company, on the basis of a portfolio deal covering all of our Turkish royalty positions. This offer was initially received in
Further to the above developments, the Company's royalty portfolio now comprises the following assets:
· A 1.2% post Turkish tax NSR royalty in the Muratdere copper-molybdenum-gold deposit, where the Company has previously announced a positive Feasibility Study that reported a net income after tax of
· A 1.5% NSR royalty relating to the Konya-Doğanbey-Karacaӧren porphyry gold project with Esan Eczacıbașı Endüstriyel Hammaddeler San. Ve Tic. A.Ș..;
· A 1.0% NSR royalty relating to the future production of antimony from the
The Company looks forward to providing further updates with respect to its ongoing asset realisations.
At the Șehitler and Enez projects, an agreement between Oriole and a local group, Yildizim Makine, with regards to ongoing exploration and mining of bentonite, failed to complete. As such, there is no longer a royalty attached to the licence, with the projects being returned to Oriole in their entirety. The Company is in communication with a number of local groups with regards to an outright sale.
Finally, the Company continues to pursue the repayment of an outstanding liability from former Turkish partner NTF İnşaat
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
 Based on an optimised resource, calculated using metal prices of
** ENDS **
For further information please visit www.orioleresources.com, @OrioleResources on Twitter, or contact:
Notes to Editors:
This information is provided by RNS, the news service of the
Quick facts: Oriole Resources PLC
Market Cap: £3.6 m
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...FOR OUR FULL DISCLAIMER CLICK HERE