Business
Update on Sale of Hasançelebi & Dogala Royalties
Update on Sale of Hasançelebi & Dogala Royalties.
About this update from Oriole Resources Plc
[{"type":"text","content":"\n \n \n RNS Number : 6954V\n Oriole Resources PLC\n 10 August 2020\n \n \n \n Oriole Resources PLC\n \n ('Oriole' or 'the Company')\n \n Update on Sale of Hasançelebi & Doğala Mining Royalties\n \n \n \n \n Oriole Resources PLC (AIM: ORR), the AIM-quoted exploration company focused on West Africa, provides an update on the sale agreement (the 'Sale Agreement') signed with its joint venture partner Bati Toroslar Madencilik Sanayi ve Ticaret Ltd. Ști ('Bati Toroslar') in relation to its Hasançelebi and Doğala\n mining royalties in Turkey (Announcement dated 30 July 2020). \n \n \n \n \n \n The Sale Agreement required Bati Toroslar to pay US$30,000 within seven days, with the balance contingent upon the commencement of mine construction at either Hasançelebi or Doğala. However, the Company today confirms that Bati Toroslar has failed to make the initial payment. As such, the Company has the right to cancel the Sale Agreement and the Board is considering its position.\n \n \n \n \n \n \n Oriole Resources CFO, Bob Smeeton, said: \n \n \n \"As part of our asset realisation strategy, we received an offer from a third party that triggered Bati Toroslar's right of first refusal. Unfortunately, despite exercising this right, Bati Toroslar has failed to make payment under the terms of the Sale Agreement and the Board now has the right to cancel the sale. Cancellation of the Sale Agreement would also remove Bati Toroslar's right of first refusal on the royalties should the Company agree a new third party offer. \n \n \n \n \n \n \n \n \"Given the substantial gold price rise since this deal was initially agreed with the third party, we are reviewing all available options\n \n \n .\n \n \n \"\n \n \n \n \n \n \n Further Details \n \n \n \n \n \n In Q4-2019, the Company signed a US$1.38 million exploration agreement ('Exploration Agreement') with Bati Toroslar for the development of its early-stage Hasançelebi and Doğala gold projects in Turkey (together 'the Projects'; Announcement dated 29 October 2019). \n Under the terms of the Exploration Agreement, the licences were transferred to Bati Toroslar whilst Oriole retained its right to a 1.5% NSR royalty on any future precious metals production at the Projects, and a 5.0% NSR royalty on the future production of any oth...