Oriole Resources PLC (LON:ORR) has signed a US$300,000 sale agreement with its joint venture partner Anadolu Export Maden Sanayi ve Ticaret Ltd Şirketi in relation to the Karaağac mining royalty in Turkey.
Oriole has received an initial tranche of US$50,000 in cash from Anadolu, with the balance contingent upon the commencement of mine construction at the Karaağac project.
The sale is in line with the company's previously stated strategy of asset monetisation, and follows the sale in February of its shares in Tembo Gold Corp for £172,000. It is intended that any proceeds received through asset sales will primarily be used to help fund a drilling programme at the company's Bibemi project in Cameroon, planned for the second half of this year.
"The sale of the legacy royalty portfolio is a part of our asset realisation strategy,” Oriole chief financial officer Bob Smeeton said in a statement.
“After extensive discussions with a number of royalty companies, an offer we received, and accepted, triggered Anadolu's right of first refusal, common to most of these arrangements, and Anadolu has taken the opportunity to exercise its right. As announced on 29 October 2019 Anadolu owes the company US$425,000 in outstanding success-based payments.
"Resolution of the royalty position now offers us the opportunity to pursue all available routes to recover this amount and we look forward to constructive discussions in the coming weeks," he added.