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Oriole Resources agrees US$250,000 deal for legacy royalty assets

Cash proceeds are to be invested in to exploration programmes in Africa

Oriole Resources PLC - Oriole Resources agrees US$250,000 deal for legacy royalty assets

Oriole Resources PLC (LON:ORR) has struck a deal to sell its legacy royalties in Turkey to its partner Bati Toroslar for US$250,000.

The deal will see Oriole receive US$30,000 within the next seven days followed by the balance in line with contingent milestones, namely the start of mine construction at either Hasançelebi or Doğala projects.

The move is in-line with the previously stated asset monetisation strategy and follows the disposal of the company’s shares in Tembo Gold Corp (for US$172,000).

READ: Oriole reports significant intersections at Pandora gold project

Cash proceeds are being directed to the drill programme at the Bibemi project in Cameroon where work is slated for the fourth quarter, subject to coronavirus (COVID-19) restrictions.

“Offers we receive and accept from third parties trigger the partners' right of first refusal, which is common to most of these arrangements. Bati Toroslar has taken the opportunity to exercise its rights,” Bob Smeeton, Oriole chief financial officer said in a statement.

“Given the prospect of receiving a US$500,000 success-based payment from Bati Toroslar as exploration work develops and a further US$220,000 once mine construction starts, it is encouraging to see its management's confidence in the projects as demonstrated by their acquisition of these royalty rights.

“We understand drilling is to commence at Hasançelebi shortly, guided by our Turkish team, and we look forward to making rapid progress towards the success-based payment, and the contingent consideration element of this deal," Smeeton added.

Quick facts: Oriole Resources PLC

Price: 0.5 GBX

Market: LSE
Market Cap: £4.56 m

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