Conroy Gold and Natural Resources PLC’s (LON:CGNR) agreement with Turkish mining company Demir Export for twelve of its exploration licences in Ireland looks to have secured at least €10mln worth of project development expenditure, according to research house First Equity.
The earn-in period under the JV has been structured over three phases, which would give Demir Export an interest up to 57.5% to the point of mine-construction ready status (e.g. a bankable feasibility study) for the expenditure of at least €9m.
Further funds could be committed after this stage on a pro-rata basis to commercial production.
In addition, a cash payment of €1m would become payable to CGNR when the LOI is converted into a definitive JV agreement, said First Equity.
Demir Export is a substantial partner with mining production interests spanning many commodities, along with gold and controlled by the uber-wealthy multi-billion dollar Turkish Koç family.
First Equity kept its buy rating and a punchy price target of 138p.
Shares in Conroy rose 17% to 30.5p.