Liberty Gold, Teck to sell Halilaga project in Turkey to Cengiz
Canadian gold discovery company Liberty Gold and its joint venture partner Teck Madencilik Sanayi Ticaret, a subsidiary of Teck Resources, have agreed to sell the Halilaga copper-gold porphyry deposit (Halilaga project) in Biga Province, northwest Turkey, to Turkish conglomerate Cengiz for $55 million, as per the latest mining acquisition news.
While the Teck Resources subsidiary will get 60% of the consideration, the remaining 40%, that is $22 million, will go to Liberty Gold, based on their ownership interests in the Halilaga project.
The Halilaga copper-gold porphyry deposit is located 20 kms southeast of the TV Tower project, which hosts a huge number of exploration targets ranging from high-sulphidation and low-sulphidation epithermal gold-silver and three drill-confirmed porphyry copper-gold discoveries. Liberty Gold will continue to own a 60% stake in the TV Tower project, while Teck owns the remaining 40% stake.
For the Halilaga project, Liberty Gold wrapped up an initial NI 43-101 resource estimate and an NI 43-101 preliminary economic assessment (PEA) in 2012. The PEA suggests the concept of an open-pit mining operation for the copper-gold porphyry deposit.
The Halilaga project, which is located in northwest Turkey, was discovered by Fronteer Gold. It is located in an area that has large open pit clay, coal and quartz mines, a major power station, and tile factories. The copper-gold mine comprises 19 licenses that are spread over 93 square kms.
The completion of the sale of the Halilaga project will be based on the meeting of customary conditions such as the approval of the Turkish Ministry of Energy and Natural Resources among others.
Payment pertaining to the sale of the copper-gold porphyry deposit will be made in three stages, with $35 million on the closing of the deal, $10 million on the first anniversary of the closing, followed by $10 million on the second anniversary.
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