The Turkish Gold Miners Association forecast that Turkey’s 2021 gold output will amount to at least 45 tonnes, surpassing last year’s record-high of 42 tonnes.
London-listed Conroy Gold and Natural Resources (CGNR) has signed a letter of intent with Turkey’s Demir Export—a subsidiary of conglomerate Koc Holding—to establish a JV, namely Demir Export JV, on an earn-in basis to operate 12 gold mining licences in the Republic of Ireland and Northern Ireland, according to a stock exchange filing by Conroy
The licences in question relate to Conroy’s 65-km district scale gold trend in the Longford-Down Massif in the vicinity of Clontibret village, located along the border between Northern Ireland and Republic of Ireland. As is the case in respect of gold mines in Turkey, gold miners in Northern Ireland and the Republic of Ireland have to deal with sometimes hostile public reaction against gold mining, with inhabitants and residents worried about the potential for environmental destruction. Such destruction continues around the world, but Conroy says it is operating in line with commitments to environmentally compatible gold extraction.
Two licences, with reserves of 517,000 ounces, are located in Clontibret village in Northern Ireland, while nine licences apply to territory in the Republic of Ireland. According to the inked letter of intent, Demir will initially inject €1mn into the JV.
In the first earn-in phase, it will spend €4.5mn and earn 25% in interest.
In the second phase, it will spend €4.5mn and earn an additional 15% in interest.
And, in the final phase, it will earn an additional 17.5% in interest.
Option to dilute
Following the final phase, Conroy will have the option of retaining its 42.5% stake or diluting its stake via other options set out in the agreement.
Conroy, which also has eight gold mining licences in Finland, previously signed a proposed JV with Azerbaijan-based and London-listed Anglo Asian Mining (AAZ) in regard to the licences in question, but the agreement in question has been terminated following the agreement with Demir. Conroy’s Finland licences, as well as one licence in Ireland, do not fall under the scope of the agreement with Demir, and the company is retaining 100% ownership in them.
However, Demir has been granted a right of first refusal on these licences in relation to any potential JV arrangements made by end-2021. Demir Export, one of a wide range of companies owned by Istanbul-listed conglomerate Koc Holding (KCHOL), has operated gold, iron, coal, zinc and copper mines in Turkey since 1957.
In February, London-listed Ariana Resources (AAU) established a JV with Turkish partners Ozaltin and Proccea in respect of the Kiziltepe gold mine in the Mardin province of Turkey