Conroy Gold and Natural Resources plc said it had signed a letter of intent (LOI) with Demir Export, which could give the Turkish miner 57% of its gold exploration project on the Irish border.
PROJECT INIS
The move comes as the junior mining company also announced that discussions had ended on a proposed JV with Azeri copper and gold producer Anglo Asian Mining plc.
The Irish miner said that the proposed joint venture (JV) with Demir, to be known as Project Inis, is on an earn-in basis over its 12 licences along its 65km district-scale gold trend in the Longford-Down Massif.
If approved, Demir will make cash payment of €1 million to Conroy Gold.
PHASES
In the first phase of earn-in, Demir will pay in work commitments €4.5 million to earn-in 25% option. This excludes Demir’s in-house costs, operator fees and minimum regulatory work commitments.
In the second phase, Demir will pay under the same terms a further €4.5 million to earn an additional 15% option, making a total 40%.
The third phase involves additional funds from Demir to reach construction-ready status to earn-in an additional 17.5% option, giving Demir a total holding of 57.5%.
CLONTIBRET
The initial main focus will be Conroy’s project at Clontibret in County Monaghan.
The remaining licences at Glenish in Co. Monaghan, Slieve Glah in Co. Cavan, and Clay Lake in Armagh would follow, one at a time, in the future.
At construction-ready status at Clontibret and /or at other developments, Conroy Gold will retain 42.5% interest.
This covers various options including a ‘Carry Loan’ on capital expenditure to commercial production while still retaining 25% interest.
Demir has right of first refusal over these licences in connection with any potential joint venture arrangements until 31 December 2021.
Both parties will continue discussions on an exclusive basis.
Conroy Gold’s 100% owned eight gold exploration licences in Finland and one other licence in Ireland are not subject to the proposed joint.
EXPERTISE
Chairman Professor Richard Conroy said that Demir had the expertise and finances to construct and operate a mine at Clontibret as well as at the other gold licences.
Demir Export has more than 60 years’ experience in mining and interests in iron, coal, gold and base metals, including zinc and copper, in Turkey.
The company belongs to the Koç family who also own the largest industrial conglomerate in Turkey, a Fortune Global 500 company, and Turkey’s leading investment holding company.