REG-Conroy Gold & Natural Resources Plc: MINES ROYAL OPTIONS GRANTED TO JV COMPANY

Conroy Gold and Natural ResourcesAnnouncement

21/03/2022 07:15

                                               
21 March 2022

Conroy Gold and Natural Resources plc       

(“Conroy Gold” or the “Company”)

MINES ROYAL OPTIONS GRANTED

 TO JOINT VENTURE COMPANY
* Grant of Mines Royal Options completes conditions for Joint Venture between
Conroy Gold and Demir Export
* The Options replace Mines Royal Options previously held by Conroy Gold in
Northern Ireland
* Options cover similar areas in Longford-Down Massif in Northern Ireland
Conroy Gold and Natural Resources PLC (AIM: CGNR), the gold exploration and
development company focused on Ireland and Finland, is pleased to announce
that two Mines Royal Options have been granted by the Crown Estate to the
Joint Venture company, Conroy Gold (Armagh) Limited. The grant of these
options meets the final outstanding condition precedent to completion of the
Joint Venture Agreement (the “JV”), with Demir Export A.? (“Demir
Export”) (as announced on 4 January 2022).

The two Mines Royal options, Mines Royal C1 (Keady) and Mines Royal C3
(Newtownhamilton), granted to the Joint Venture Company replace the two Mines
Royal options held by Conroy Gold in the Longford–Down Massif in Northern
Ireland and cover areas encompassing those previously held, together with, in
Mines Royal C1, an additional c. 20 sq km. Other than the change of grantee,
the Mines Royal options are on similar terms to those previously held by the
Company.

The JV’s aim, in addition to the development of the gold deposit in the
Clontibret Licence to construction ready status and then bringing it into
production as a gold mine, is to take the Mines Royal Options/Northern Ireland
Licences, and the other Licences held by the JV, to construction ready status.

Demir Export is a long-established mining company with interests in iron,
coal, gold and base metals, including zinc and copper, in Turkey.  It has a
strong in-house technical team with mining and exploration expertise. Demir
Export brings over 60 years of mine operating experience to bear on the
project and it places a strong emphasis on the adoption of international
environmental, and health and safety management standards.

The investment by Demir Export will be directly into three Joint Venture
companies, Conroy Gold (Armagh) Limited, Conroy Gold (Clontibret) Limited and
Conroy Gold (Longford Down) Limited, each holding a relevant licence or group
of licences.  

Key Terms of the JV
* Demir Export to expend €4.5 million in work commitments (except Demir
Export in-house costs, Operator fees and Minimum Regulatory Work Commitments)
to earn-in a 25% option in the project in the first phase of the earn-in
period.
* Demir Export to expend an additional €4.5 million in work commitments
(except Demir Export in-house costs, Operator fees and Minimum Regulatory Work
Commitments) to earn an additional 15% option in the second phase of the
earn-in period, again in the project.
* Expenditure by Demir Export of the additional funds required to reach
construction-ready status to earn-in an additional 17.5% option in the third
phase of the earn-in period of a given development thus increasing Demir
Export’s holding to a total of 57.5% in that development. 
* At construction-ready status at Clontibret and / or other developments,
Conroy Gold to retain a 42.5% interest with various options including a
“Carry Loan” on capital expenditure to commercial production whilst still
retaining a 25% interest.
* Under the terms of the Agreement, on closure, Demir Export is to make a cash
payment of €1 million to Conroy Gold.
Following completion of the outstanding condition on the Joint Venture, Conroy
Gold and Demir Export will now proceed to complete the JV agreement in
accordance with its terms, one of which is the payment of €1 million by
Demir Export to Conroy.

Full details of the JV can be found in the EGM circular available on the
Company's website (www.conroygold.com) and the material aspects in the
announcement of 30 November 2021.

Professor Richard Conroy, Chairman, commented: 

“I am very pleased that the Crown Estate has granted these two Mines Royal
options in Northern Ireland to Conroy Gold (Armagh) Limited. This was the only
outstanding condition to completion of the Joint Venture Agreement with Demir
Export.

My colleagues and I look forward very much to working with the Demir Export
team and building a long term, successful relationship.

They have the mining expertise and the financial resources not only to bring
the Clontibret gold deposit to construction ready status and into operation as
a mine, but also to advance the significant gold potential of the other
licences along the gold trend to the same status.

As announced on 14 March 2022 a drilling programme by the JV is due to
commence towards the end of April. I look forward to making further
announcements in due course.”

For further information please contact:

 Conroy Gold and Natural Resources PLC  Tel: +353-1-479-6180   
 Professor Richard Conroy, Chairman                            
 Allenby Capital Limited (Nomad)        Tel: +44-20-3328-5656  
 Nick Athanas/Nick Harriss                                     
 First Equity Limited (Broker)          Tel: +44-20-7330-1883  
 Jason Robertson                                               
 Lothbury Financial Services            Tel: +44-20-3290-0707  
 Michael Padley                                                
 Hall Communications                    Tel : +353-1-660-9377  
 Don Hall  www.conroygold.com                                  
                                                               



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