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Oriole Resources PLC (ORR)

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Monday 11 March, 2019

Oriole Resources PLC

Turkish investment to deliver US$0.5m

RNS Number : 3801S
Oriole Resources PLC
11 March 2019
 

Oriole Resources PLC 

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

 

Turkish investment to deliver US$0.5m

 

Oriole Resources, the AIM-quoted exploration company operating in Africa and Europe, is pleased to announce that it will receive US$0.5m in success-based payments from its partner Anadolu Export Maden Sanayi ve Ticaret Limited Şirketi ('Anadolu') in relation to the Karaağaç project in Turkey ('Karaağaç' or the 'Project'). The payment occurs as per the terms of the exploration agreement (the 'Agreement'), which was announced on 2 February 2015, following the definition of a minimum JORC 2012-compliant Resource of 50,000oz Au.

 

Highlights

-      Anadolu triggers success-based payment of US$0.5m by defining minimum JORC 2012-compliant Measured, Indicated and Inferred Resource of 50,000oz Au at Karaağaç;

-      Anadolu announces a JORC-2012 compliant Indicated and Inferred resource for the Project of 348,150 oz Au and 2,832,036 oz Ag (0.2 g/t cut-off);

-      Oriole to receive staged payments of US$25,000 per month for 20 months - first payment already received for February 2019;

-      Environmental Impact Assessment ('EIA') awaiting approval by Urban and Environment Ministry;

-      Oriole will receive 1.5% net smelter returns ('NSR') royalty on any future production.

 

Oriole Resources CFO, Bob Smeeton, said: "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. We have now reached a commercial arrangement with them to receive the payment over a period that suits both parties.

 

This agreement is further evidence of the success of Oriole's self-funding exploration strategy that has been applied throughout our portfolio. The Company's focus on developing projects in conjunction with carefully chosen partners means that we can expose investors to significant exploration upside whilst also minimising the risk of dilution."

 

 

Further Information

In February 2015, the Company signed an Agreement with Turkish company Anadolu, 96%-owned by Istanbul-listed ODAŞ Elektrik ('ODAŞ'), for its Karaağaç project where the Company had previously defined an inferred non-JORC resource of 156,798 oz Au (Announcement dated 24 May 2007). At the time of signing, the Project was valued in the Company's financial accounts at around £53,000 (Announcement dated 2 February 2019).

Under the terms of the Agreement, the Company transferred the licences to Anadolu, in return for a commitment by Anadolu to spend up to US$1.5m on exploration and drilling at the Project within two years (Announcement dated 2 February 2015). Permitting delays led to an extension to the two-year exploration period (Announcement dated 21 December 2017). In January 2019, ODAŞ announced the definition of a JORC-2012 compliant Indicated and Inferred Mineral Resource of 348,150 oz Au (167,486 oz Au Indicated, 180,664 oz Au Inferred) and 2,832,036 oz Ag (1,255,604 oz Ag Indicated, 1,576,432 oz Ag Inferred)  (https://www.odasenerji.com.tr/tr/degerli-ve-stratejik-metaller/#Antimuan). A Competent Person from Oriole has not reviewed the Mineral Resource Estimate, and the Company is relying entirely on the disclosure of the Mineral Resource Estimate by Anadolu.

Oriole has been managing the exploration and drilling programmes throughout, at Anadolu's cost. Under the terms of the Agreement, definition of this JORC 2012- compliant resource has triggered the payment by Anadolu of a US$0.5m success-based fee. Oriole will now receive staged payments of US$25,000 per month for a period of 20 months, and the first payment for February 2019 has been received.

On 10 September 2018, Anadolu submitted an EIA report to the Urban and Environment Ministry. Following review by the Ministry's technical committee and a period of public review (ended 9 November 2018 with no objections), the report is now pending final approval. Anadolu is yet to advise of its intentions regards to mine development but Oriole retains a 1.5% NSR royalty on any future mineral production.

 

 

** ENDS **

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

 

Oriole Resources PLC

Bob Smeeton / Tim Livesey /Claire Bay

 

Tel: +44 (0)20 7830 9650

Camarco (IR/PR contact)

Gordon Poole / Nick Hennis

 

Tel: +44 (0)20 3781 8330

Grant Thornton UK LLP

Samantha Harrison / Ben Roberts / Niall McDonald

 

Tel: +44 (0)20 7383 5100

Hannam & Partners

Neil Passmore / Andrew Chubb

 

Tel: +44 (0)20 7907 8500

Turner Pope Investments (TPI) Ltd

Ben Turner / James Pope / Andy Thacker

Tel: +44 (0)2036214120

 

 

 

Notes to Editors:

 

Oriole Resources PLC is an AIM-listed exploration company, operating in Africa and Europe. It is focused on early-stage exploration in Cameroon and the more advanced Dalafin gold project in Senegal, where IAMGOLD has the option to spend US$8m to earn a 70% interest. The Company has a number of interests and royalties in companies operating throughout Africa and Turkey and is assessing new opportunities in both regions.


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