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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
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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.

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