Centerra takes over Turkey Öksüt gold mine

Stratex International sold its 1% net smelter return (NSR) royalty for Öksüt gold project to Centerrra Gold for $4.5 million. According to the report about the transaction, after detailed negotiations with a number of prospective buyers, Stratex has sold its 1% NSR royalty – current valuation of US$5.1 million (Net Present Value at 10% discount) before transaction costs, based on a gold price of US$1,100 – to former joint-venture partner Centerra, which now holds 100% of Öksüt, writes miningturkey.com

CEO of Stratex, Bob Foster stated, “This transaction completes a very significant year for Stratex which culminated in the first gold pour from our 45%-owned Altintepe Gold Mine in Turkey. Centerra have targeted first gold production at Öksüt for early Q2-2017, which would have seen the first royalty payments to Stratex later that year and continuing for the life of the mine, currently estimated to be a minimum of eight years. However, realising the royalty now, rather than waiting for future payments, eliminates any project risk, permitting delays, or further weakness in the gold price and provides us with the platform to develop our growth strategies in 2016 with confidence.”