“As part of our asset realisation strategy, we received an offer from a third party that triggered Bati Toroslar’s right of first refusal”, said Bob Smeeton, Oriole’s CFO.
Bati Toroslar has failed to make the initial payment, which has given it the right to cancel the sale agreement. Oriole Resources PLC said it is considering its options over an agreement to sell the Hasançelebi and Doğala mining royalties in Turkey.
The agreement required partner 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.
Oriole added Bati Toroslar has failed to make the initial payment, which has given it the right to cancel the sale agreement.
“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.
“Given the substantial gold price rise since this deal was initially agreed with the third party, we are reviewing all available options.”