Ariana Resources Plc is acquiring the remaining stake in the Salinbas gold project in Turkey from Eldorado Gold Corp. for a "nominal cash consideration" and up to a 2% net smelter return royalty on production.
The company already owned a 49% interest in Greater Pontides Exploration BV, which holds the project licenses, in a joint venture with Eldorado subsidiary Eldorado Gold (Netherlands) BV.
The project area includes the Salinbas gold-silver deposit, the Ardala copper-gold-molybdenum porphyry deposit and the Hizarliyayla gold-silver system, according to a Dec. 21 statement.
Ariana will also make advance royalty payments of US$7,000 per year to the original owner of the Ardala license as well as a 1.5% royalty when the project starts production. The Eldorado royalty on the Ardala license will be 0.5%.
Ariana said it is mulling a work program on the Salinbas project in 2017 to identify potential resource extensions and consider routes to commercialize the project.
A scoping study in April 2015 at the Salinbas project indicated the potential for a low-cost mine producing about 50,000 ounces of gold and 100,000 ounces of silver per annum over a 10-year mine life.