#Turkey #Net Smelter Return #Polimetal #Kenz Madencilik #Nigde

ACG Metals Limited Secures Net Smelter Return Agreement

ACG Metals Limited, through its subsidiary Polimetal, has recently made significant strides in the mining sector by finalizing a 2% Net Smelter Return (NSR) royalty agreement. This deal pertains to a mining license located in Niğde Province, Çamardı District, Türkiye, marking an important step in the company's exploration and production plans.

Background of the Agreement

This NSR interest emerged from an earlier joint operation and option agreement established in 2012 between Polimetal and Kenz Madencilik, the Turkish mining company. That original agreement facilitated the transfer of mining rights to Kenz Madencilik, in exchange for a cash consideration totaling USD 150,000, along with an obligation for exploration expenditures. Notably, Polimetal retained the right to acquire the NSR rights under the terms of that initial agreement.

The new NSR agreement with Kenz Madencilik stipulates that Polimetal is entitled to receive 2% of gross revenues derived from all mineral sales, after standard deductions are accounted for. This return will be applicable throughout the entire operational lifetime of the project, providing a solid financial foundation for Polimetal without requiring direct exploration or operational commitments from ACG Metals.

Exploring New Frontiers in Mining

Currently, the license area under this NSR agreement is the subject of ongoing exploration activities. The primary objective is to identify and develop precious metals and other mineralization opportunities in the region. As global demand for these resources continues to rise, the focus on maximizing the potential of these mining areas becomes increasingly crucial.

By securing this NSR agreement, ACG Metals is positioning itself to benefit from future revenue streams with minimized risk exposure. The structure allows them to gain cash flow benefits while ensuring that Kenz Madencilik undertakes the necessary operational responsibilities and risks associated with exploration. This strategic relationship enhances ACG’s exposure to the mining sector while adhering to a model that emphasizes prudent risk management.

Future Prospects for ACG Metals

ACG Metals has a broader vision of consolidating its presence within the copper industry, following a series of roll-up acquisitions, while maintaining strong Environmental, Social, and Governance (ESG) criteria. One notable achievement occurred in September 2024, when the firm successfully acquired the Gediktepe Mine, which is projected to transition to primary production of copper and zinc by 2026. This mine is expected to yield an impressive annual steady-state production rate in the range of 20-25 kilotons equivalent copper.

The upcoming exploration and potential yields from the Niğde Province license could be pivotal for ACG, considering the strategic focus on ESG and operational sustainability across its mining portfolio. The management team brings extensive experience from prominent multinational companies in the sector, offering a robust framework for successful execution of the company's strategic goals.

In conclusion, ACG Metals Limited's recent NSR agreement with Kenz Madencilik is a promising development that supports the company's long-term mining objectives while providing a pathway for sustainable financial growth. As exploration efforts continue to progress, stakeholders and investors keenly await future updates on the developments within this promising mining area in Türkiye.

For more inquiries, please reach out to Artem Volynets, Chief Executive Officer, or visit ACG Metals for further details on their operations and strategic initiatives.