Net Smelter Return Agreement Signed
ACG Metals Limited announced that its subsidiary, Polimetal, has secured a 2% Net Smelter Return (NSR) royalty over a mining license area in Türkiye. The NSR agreement originates from a 2012 joint operation where Polimetal transferred the license to Kenz Madencilik for USD 150,000 and exploration expenditures, while retaining an option to acquire the NSR right. Polimetal will receive 2% of gross revenues from mineral sales, net of standard deductions, for the project's operational life. This agreement provides ACG Metals with future cash flow exposure without direct investment in exploration or operations.
Select text to share a quote on X · sign in to keep highlights & notes in your ACG notes
ACG Metals Limited ("ACG" or the "Company") is pleased to announce that its subsidiary, Polimetal, has secured a 2% Net Smelter Return ("NSR") royalty over a mining license area located in Niğde Province, Çamardı District, Türkiye.
This NSR interest originates from a joint operation and option agreement executed in 2012 between Polimetal and Kenz Madencilik ("Kenz Madencilik"), under which the license was transferred to Kenz in exchange for a cash consideration of USD 150,000 and the undertaking of exploration expenditures, while Polimetal retained an option to acquire the NSR right.
The NSR agreement signed with Kenz Madencilik entitles Polimetal to receive 2% of gross revenues from all mineral sales, net of standard deductions, for the full operational life of the project. The license area is currently the focus of exploration activities targeting precious metals and other mineralisation.
This structure provides ACG with future cash flow exposure without direct exploration investment or operational involvement.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.