Business
Sale of Karaagac Mining Royalty
Sale of Karaagac Mining Royalty.
About this update from Oriole Resources Plc
[{"type":"text","content":"\n \n \n RNS Number : 2509W\n Oriole Resources PLC\n 17 August 2020\n \n \n \n Oriole Resources PLC\n \n ('Oriole', 'the Company' or 'the Group')\n \n Sale of Karaağac Mining Royalty\n \n \n \n \n Oriole Resources PLC (AIM: ORR), the AIM-quoted exploration company focused on West Africa, is pleased to announce that it has signed a US$300,000 sale agreement ('Sale Agreement') with its joint venture partner Anadolu Export Maden Sanayi ve Ticaret Limited Şirketi ('Anadolu'), in relation to the Karaağac\n mining royalty in Turkey. Oriole has received an initial tranche of US$50,000 in cash from Anadolu, with the balance contingent upon the commencement of mine construction at the Karaağac project ('Karaağac' or the 'Project').\n \n \n \n \n \n The sale is in line with the Company's previously stated strategy of asset monetisation and follows the recent \n sale of its shares in Tembo Gold Corp. that delivered net proceeds of £172,000 (announcement dated 25 February 2020). \n It is intended that any\n proceeds received through asset sales will primarily be used to help fund a drilling programme at the Company's Bibemi project in Cameroon, planned for H2-2020 subject to ongoing developments around Covid-19. \n \n \n \n \n \n \n \n \n \n Oriole Resources CFO, Bob Smeeton, said: \n \n \n \"The sale of the legacy royalty portfolio is a part of our asset realisation strategy. After extensive discussions with a number of royalty companies, an offer we received, and accepted, triggered Anadolu's right of first refusal, common to most of these arrangements, and Anadolu has taken the opportunity to exercise its right. \n \n \n \n \n \n \n \n \"As announced on 29 October 2019 Anadolu owes the Company US$425,000 in outstanding success-based payments. Resolution of the royalty position now offers us the opportunity to pursue all available routes to recover this amount and we look forward to constructive discussions in the coming weeks\n \n \n .\n \n \n \"\n \n \n \n \n \n \n \n \n \n \n \n \n Further Details \n \n \n \n \n \n In 2015, the Company signed an exploration agreement ('Exploration Agreement') with Turkish company Anadolu, 96%-owned by Istanbul-listed ODAŞ Elektrik, whereby the licences were transferred to Anadolu in return for its commitment to spend up to US$...