Receipt of US$220,000 from legacy asset in Turkey

Oriole Resources PLC

22 May 2024

 

Oriole Resources PLC 

('Oriole Resources' or 'the Company' or 'the Group')

Receipt of US$220,000 from a legacy asset in Turkey

Oriole Resources PLC (AIM: ORR), the AIM-quoted exploration company focused on West Africa, is pleased to announce that it has received US$220,000 in relation to the Company's interest in the Hasançelebi and Doğala mining projects in Turkey (together 'the Projects') and expects to receive a further US$80,000 later in Q2-2024 (together the 'Total Consideration').

The Total Consideration, once received in full, will clear all outstanding amounts due to Oriole under both the exploration agreement ('Exploration Agreement'), signed with the Company's joint venture partner, Bati Toroslar Madencilik Sanayi ve Ticaret Ltd ('Bati Toroslar'), in 2019 (announcement dated 29 October 2019), which included a resource-linked success-based payment ('Success-Based Payment'), and the Royalty Sale Agreement signed with Bati Toroslar in 2020 (announcement dated 30 July 2020). The outstanding amounts under the two agreements had no carrying value in the financial statements of the Company.

It is intended that the proceeds will primarily be used to fund further exploration work in Cameroon.

Oriole Resources CEO, Martin Rosser, said: "Realising value from the Company's legacy assets in Turkey has been a protracted process and so we are delighted to announce incoming proceeds of US$300,000 from Bati Toroslar, as settlement of all amounts owing and potentially owing by them. Bati Toroslar has been a good partner to Oriole and, following its decision to sell the Hasançelebi project, has been exemplary in honouring its commitments to Oriole under the Exploration Agreement and the Royalty Sale Agreement.

"Agreement to settle the Success-Based Payment came after careful consideration by the Board, taking into account the risks and timelines upon which receipt of the full Success-Based Payment would be contingent."

Further Details

In Q4-2019, the Company's wholly-owned Turkish subsidiary signed a US$1.38 million Exploration Agreement with Bati Toroslar transferring the development of its early-stage Hasançelebi and Doğala gold projects in Turkey (announcement dated 29 October 2019). Under the terms of the Exploration Agreement, the licences were transferred to Bati Toroslar whilst the Company retained its right to a US$500,000 Success-Based Payment (due upon successful completion of an Environmental Impact Assessment ('EIA')) and a minimum JORC-compliant Indicated or Measured gold resource of 100,000 ounces (with a 0.3 gramme per tonne cut off), a 1.5% Net Smelter Return ('NSR') royalty on any future precious metals production at the Projects, and a 5.0% NSR royalty on the future production of any other metals or industrial raw minerals.

In Q3-2020, Bati Toroslar's exercised its right of first refusal to purchase the Hasançelebi and Doğala royalties by matching a third-party offer, and Oriole signed a US$250,000 Royalty Sale Agreement with Bati Toroslar. The Company received the first tranche of US$30,000 in cash in 2020, with the balance of US$220,000 due upon initiation of project construction activities at either of the Projects, or the sale of one or both of the licences.

In May 2024, Bati Toroslar completed the sale of the Hasançelebi project to a third-party Turkish company, thus triggering payment of the outstanding US$220,000. That payment has now been received by the Company. 

In finalising the receipt of the outstanding payment on the Royalty Sale Agreement, the parties also concluded an agreement to settle the potential Success-Based Payment for US$80,000 in cash, which is expected to be received in June 2024. 

** ENDS **

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information please visit www.orioleresources.com, @OrioleResources on Twitter, or contact:

Oriole Resources PLC Martin Rosser / Bob Smeeton / Claire Bay	Tel: [phone]
BlytheRay (IR/PR contact) Tim Blythe / Megan Ray	Tel: [phone]
Grant Thornton UK LLP Samantha Harrison / Ciara Donnelly / Elliot Peters	Tel: [phone]
SP Angel Corporate Finance LLP Ewan Leggat / Kasia Brzozowska	Tel: [phone]

Notes to Editors:

Oriole Resources PLC is an AIM-listed gold exploration company, operating in West Africa. It is focussed on early-stage exploration in Cameroon, where the Company has reported a Resource of 375,000 oz Au at 2.30g/t in the JORC Inferred category at its 82.2%-owned Bibemi project and has identified multi-kilometre gold and lithium anomalism within the district-scale Central Licence Package project. BCM International is currently earning up to a 50% interest in the Bibemi and Mbe projects in return for a combined investment of US$1.5 million in signature payments (which has already been received), up to US$8 million in exploration expenditure, as well as JORC resource-based success payments.

At the Senala gold project in Senegal, AGEM Senegal Exploration Suarl ('AGEM'), a wholly-owned subsidiary of Managem Group, has recently completed a six-year earn-in to acquire an estimated 59% beneficial interest in the Senala Exploration Licence by spending US$5.8 million. A review of expenditure and discussions on the formation of a joint-venture company are currently underway. The Company also has several interests and royalties in companies operating in East Africa and Turkey that could deliver future cash flow.

 

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