REG - Oriole Resources PLC - Receipt of US$220,000 from legacy asset in Turkey

Oriole ResourcesAnnouncement

22/05/2024 07:15

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RNS Number : 3711P  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
(http://www.orioleresources.com/) , @OrioleResources on Twitter, or
contact:

 

 Oriole Resources PLC                                  Tel: +44 (0)20 7830 9650

 Martin Rosser / Bob Smeeton / Claire Bay

 BlytheRay (IR/PR contact)                             Tel: +44 (0)20 7138 3204

 Tim Blythe / Megan Ray

 Grant Thornton UK LLP                                 Tel: +44 (0)20 7383 5100

 Samantha Harrison / Ciara Donnelly / Elliot Peters

 SP Angel Corporate Finance LLP                        Tel: +44 (0)20 3470 0470

 Ewan Leggat / Kasia Brzozowska

 

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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