Proactive Investors - Run By Investors For Investors

Oriole Resources receives US$0.5mln from Turkish partner at Karaağaç

The pay-out was triggered after Andolu defined a JORC-compliant resource estimate at the Karaağaç project in Turkey
gold nuggets
Oriole retains a 1.5% net smelter royalty on any future production at Karaağaç

Gold explorer Oriole Resources PLC (LON:ORR) is to receive US$0.5mln from its Turkish partner, Andolu.

The pay-out was triggered after Andolu defined a JORC-compliant resource estimate of 348,150 ounces gold and 2.83mln ounces of silver at the Karaağaç project in Turkey.

Oriole will receive US$25,000 a month for the next 20 months. The first payment has already been perceived.

READ: Oriole’s stake at Muratdere now below 10%

“We are delighted that Anadolu have progressed the licence to a point where the success-based payment has been triggered and to see a significant uplift in the defined resource,” said chief financial officer Bob Smeeton.

“We have now reached a commercial arrangement with them to receive the payment over a period that suits both parties.”

He added: “This agreement is further evidence of the success of Oriole's self-funding exploration strategy that has been applied throughout our portfolio.”

Oriole transferred the Karaağaç licences to Andolu back in 2015 in return for a commitment by Andolu to spend up to US$1.5mln on exploration and drilling at the project.

AIM-quoted Oriole has been managing the exploration and drilling programmes throughout – at Anadolu's cost – and retains a 1.5% net smelter royalty on any future production.

Shares were unchanged at 0.37p at the opening bell on Monday.

View full ORR profile View Profile

Oriole Resources PLC Timeline

Related Articles

May 15 2018
Output is targeted to average around 225,000 ounces a year over an initial 10-year mine life
January 02 2019
Lionsgold has flagged a re-listing for the first quarter of 2019
February 06 2019
The plan is to get into profitable mining at about 30,000oz per year initially and see what the full potential might be as operations go deeper

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use