Conroy Gold & Natural Resources Plc MINES ROYAL OPTIONS GRANTED TO JV COMPANY
21 March 2022 - 6:00PM
UK Regulatory
TIDMCGNR
21 March 2022
Conroy Gold and Natural Resources plc
("Conroy Gold" or the "Company")
MINES ROYAL OPTIONS GRANTED
TO JOINT VENTURE COMPANY
* Grant of Mines Royal Options completes conditions for Joint Venture between
Conroy Gold and Demir Export
* The Options replace Mines Royal Options previously held by Conroy Gold in
Northern Ireland
* Options cover similar areas in Longford-Down Massif in Northern Ireland
Conroy Gold and Natural Resources PLC (AIM: CGNR), the gold exploration and
development company focused on Ireland and Finland, is pleased to announce that
two Mines Royal Options have been granted by the Crown Estate to the Joint
Venture company, Conroy Gold (Armagh) Limited. The grant of these options meets
the final outstanding condition precedent to completion of the Joint Venture
Agreement (the "JV"), with Demir Export A.? ("Demir Export") (as announced on 4
January 2022).
The two Mines Royal options, Mines Royal C1 (Keady) and Mines Royal C3
(Newtownhamilton), granted to the Joint Venture Company replace the two Mines
Royal options held by Conroy Gold in the Longford-Down Massif in Northern
Ireland and cover areas encompassing those previously held, together with, in
Mines Royal C1, an additional c. 20 sq km. Other than the change of grantee,
the Mines Royal options are on similar terms to those previously held by the
Company.
The JV's aim, in addition to the development of the gold deposit in the
Clontibret Licence to construction ready status and then bringing it into
production as a gold mine, is to take the Mines Royal Options/Northern Ireland
Licences, and the other Licences held by the JV, to construction ready status.
Demir Export is a long-established mining company with interests in iron, coal,
gold and base metals, including zinc and copper, in Turkey. It has a strong
in-house technical team with mining and exploration expertise. Demir Export
brings over 60 years of mine operating experience to bear on the project and it
places a strong emphasis on the adoption of international environmental, and
health and safety management standards.
The investment by Demir Export will be directly into three Joint Venture
companies, Conroy Gold (Armagh) Limited, Conroy Gold (Clontibret) Limited and
Conroy Gold (Longford Down) Limited, each holding a relevant licence or group
of licences.
Key Terms of the JV
* Demir Export to expend ?4.5 million in work commitments (except Demir
Export in-house costs, Operator fees and Minimum Regulatory Work
Commitments) to earn-in a 25% option in the project in the first phase of
the earn-in period.
* Demir Export to expend an additional ?4.5 million in work commitments
(except Demir Export in-house costs, Operator fees and Minimum Regulatory
Work Commitments) to earn an additional 15% option in the second phase of
the earn-in period, again in the project.
* Expenditure by Demir Export of the additional funds required to reach
construction-ready status to earn-in an additional 17.5% option in the
third phase of the earn-in period of a given development thus increasing
Demir Export's holding to a total of 57.5% in that development.
* At construction-ready status at Clontibret and / or other developments,
Conroy Gold to retain a 42.5% interest with various options including a
"Carry Loan" on capital expenditure to commercial production whilst still
retaining a 25% interest.
* Under the terms of the Agreement, on closure, Demir Export is to make a
cash payment of ?1 million to Conroy Gold.
Following completion of the outstanding condition on the Joint Venture, Conroy
Gold and Demir Export will now proceed to complete the JV agreement in
accordance with its terms, one of which is the payment of ?1 million by Demir
Export to Conroy.
Full details of the JV can be found in the EGM circular available on the
Company's website (www.conroygold.com) and the material aspects in the
announcement of 30 November 2021.
Professor Richard Conroy, Chairman, commented:
"I am very pleased that the Crown Estate has granted these two Mines Royal
options in Northern Ireland to Conroy Gold (Armagh) Limited. This was the only
outstanding condition to completion of the Joint Venture Agreement with Demir
Export.
My colleagues and I look forward very much to working with the Demir Export
team and building a long term, successful relationship.
They have the mining expertise and the financial resources not only to bring
the Clontibret gold deposit to construction ready status and into operation as
a mine, but also to advance the significant gold potential of the other
licences along the gold trend to the same status.
As announced on 14 March 2022 a drilling programme by the JV is due to commence
towards the end of April. I look forward to making further announcements in due
course."
For further information please contact:
Conroy Gold and Natural Resources PLC Tel: +353-1-479-6180
Professor Richard Conroy, Chairman
Tel: +44-20-3328-5656
Allenby Capital Limited (Nomad)
Nick Athanas/Nick Harriss
First Equity Limited (Broker) Tel: +44-20-7330-1883
Jason Robertson
Lothbury Financial Services Tel: +44-20-3290-0707
Michael Padley
Hall Communications Tel: +353-1-660-9377
Don Hall
www.conroygold.com
END
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