Sahres in Conroy Gold and Natural Resources PLC (AIM:CGNR) shot higher after it said last night said an agreement was reached on the main terms of the proposed joint venture with Turkish conglomerate Demir Export.
Under the joint venture, called Project Inis, Demir will fund and develop, on an earn-in basis, Conroy’s gold deposit within the Clontibret licence in Ireland to construction-ready status and bring it into operation as a gold mine.
The parties further aim is for Demir to fund and develop the other licences held by Conroy one after the other.
An EGM is being convened for 12 noon on 22 December 2021 for shareholders to ratify the agreement.
In the year to 31 May 2021, Conroy ended the period with net assets of €19,9mln (2020 - €17.6mln) and generated a profit before taxation of €211,000 (2020 - loss €677,380).
Approximately 90% of these numbers relate to the Longford-Down Zone and the licences subject to the agreement.
“Definitive agreements with Demir Export are now at an advanced stage and an EGM is expected to be convened shortly to seek shareholder approval for the proposed joint venture", Professor Richard Conroy, Conroy's chairman, said.
"We are now entering a new era and my colleagues and I look forward very much to working with the Demir Export team on the joint venture partnership - Project Inis – once the agreements are concluded and building the foundation for a long term, successful relationship.
“We look forward to developing our first gold mine.”
Shares in Conroy jumped 34% to 27.5p.