Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Chesser Resources on Wednesday announced the sale of its Kestanelik gold project in Turkey, for $40-million to Nurol Holdings.
Chesser told shareholders that the transaction would deliver a number of benefits to the company, while avoiding significant, potentially dilutive capital raising to fund the development of the project.
The company noted 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.
The Kestanelik project has an indicated resource of 183 000 oz of gold, grading at 3.53 g/t gold and a total resource of 703 000 oz, at 2.15 g/t gold.
Meanwhile, Chesser said that on closing of the transaction, the company would make a 15c-a-share cash return to shareholders, with the balance of the funds used to pursue a future strategy.
The company would look to identify further investment opportunities in the resources sector, and would also advance its Catak and Sisorta projects.