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Chesser heads to exit Turkey

30th January 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Chesser Resources will exit Turkey by June this year, with the miner reporting on Friday that it would cease its hunt for new resource opportunities.

In September, Chesser announced the sale of its Kestanelik gold project in Turkey, for $40-million to Nurol Holdings.

The company said, at the time, that while the future standalone development of Kestanelik could potentially provide substantial financial returns to shareholders, the development process would come with major attendant risk, including permitting risk, gold price risk, construction risk, exploration risk and sovereign risk.

Earlier this month, Chesser announced plans to conduct a strategic review of the company, which included a review of potential resource project acquisitions.

Chesser said on Friday that following the strategic review, the majority of the company’s directors have formed the view that the most appropriate and lowest-risk strategy would be for a return of capital to shareholders, rather than further investment in resources.

The junior pointed out that in reviewing the potential resource projects for sale, the company had been unable to identify a suitable project that met the stringent investment criteria approved by Chesser’s directors.

Furthermore, the company has determined not to proceed with any further investment in its Catak project, and would return the project to the underlying owner, while Chesser would also seek a buyer for its 51% interest in the Sisorta project.

With the completion of these milestones, the company was hoping to finalise its exit from Turkey by June.

Chesser said that it was now taking steps to seek approval for a return of capital,  and shareholders could likely expect a return of 2.75c a share. If the further return of capital is approved, the company would be left with some A$2.1-million in working capital to meet its ongoing corporate costs.

Edited by Creamer Media Reporter

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