21st Nov 2019 13:45
(Alliance News) - Oriole Resources PLC has concluded a royalty conversion, it said on Thursday, which was first announced in March.
Oriole in March agreed to swap part of its stake in the Muratdere copper-gold project in Turkey into a 1.2% post-tax net smelter returns royalty, a deal which has now been concluded.
Oriole said the mine would, over 16 years, produce metal in concentrate of around 68,000 tonnes of copper, 32,000 ounces of gold, and 955,000 ounces of silver. This would give revenue of over USD400 million over that period at today's prices.
"We are pleased with the progress our partner has made in moving Muratdere towards mine-development. The conversion of our interest to a 1.2% net smelter returns royalty gives us a valuable and potentially saleable asset," said Oriole Chief Financial Officer Bob Smeeton.
"We would anticipate the net smelter return to be approximately 90% of the estimated USD400 million gross metal revenues over the sixteen year mine life, making the 1.2% royalty a substantial asset for the group."
London-based Oriole's shares were 3.9% lower on Thursday afternoon at a price of 0.37 pence each.
By George Collard; [email protected]
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