ACG to Acquire Keşkek Licence to Extend Gold Production
ACG Metals moves to secure additional oxide ore near Gediktepe, aiming to extend heap leach gold production with the Keşkek licence acquisition.
Rhea-AI Summary
ACG Metals (ACGAF) agreed to acquire 100% of mining licence 60926, hosting the Keşkek gold project in Türkiye, from META for an initial US$4 million, with total cash consideration of up to US$7.85 million plus a royalty.
The Licence covers 666 hectares and is expected to provide nearby oxide ore feed to ACG’s Gediktepe heap leach facility, potentially extending its gold production life by several years. The initial Keşkek pit contains about 300 kt at 0.90 g/t Au with an estimated 1:1 waste-to-ore strip ratio. ACG estimates an indicated mineral resource of 1.5 Mt at 0.65 g/t Au within the Licence, and metallurgical tests indicate gold recoveries of 75–80%, rising to about 85% using Gediktepe’s existing patented process. Mining and gold production are targeted to begin in mid-2027, subject to permitting, with total project, exploration and closure expenditure estimated at about US$15 million over ten years. META will receive a 1% gross revenue royalty on gold from the Licence.
Positive
- Licence acquisition for up to US$7.85 million securing nearby oxide ore feed
- Initial Keşkek pit ~300 kt at 0.90 g/t Au with 1:1 strip ratio
- Estimated indicated resource 1.5 Mt at 0.65 g/t Au within the Licence
- Metallurgical recoveries 75–80%, increasing to ~85% using existing Gediktepe process
- Project spend approximately US$15 million over ten years, including acquisition and closure
- Targeted start of mining and gold production in mid-2027, extending Gediktepe’s gold circuit life
Negative
- Deferred consideration US$3.85 million contingent on EIA permitting by mid-2027
- Ongoing royalty 1% of gross revenue on gold mined from the Licence area
- Additional payment US$60/oz for gold discovered and converted to reserves outside the defined pit
- Permitting risk production start and part of consideration depend on EIA and licence transfer approvals
AI-generated analysis. How Rhea-AI works. Not financial advice.
Keşkek provides a new source of oxide ore within 70 km of ACG's Gediktepe mine in Türkiye and is expected to extend the utilisation of the Company's heap leach facility (the "Facility") by several years.
Highlights
- Acquisition of the Licence, covering 666 hectares, for an initial cash consideration of US
$4 million and potential deferred cash consideration ofUS .85 million at start of production in mid-2027.$3 - Secures extension of oxide feed for the Facility, supporting continued gold production and utilisation of existing infrastructure following full realisation of the production potential of Gediktepe's own oxide ore.
- Initial oxide feed to come from the META defined Keşkek pit, containing approximately 300 kt grading 0.90 g/t Au at an estimated waste-to-ore strip ratio of 1:1.
- ACG's technical team estimates the Keşkek Licence to contain a mineral resource of 1.5 Mt grading 0.65 g/t Au. Exploration potential for an additional 5–10 Mt of mineralisation grading 0.7–1.0 g/t Au, subject to further drilling.
- Metallurgical testwork undertaken by ACG achieved gold recoveries of 75–
80% , increasing to approximately85% using Gediktepe's existing patented proprietary recovery process. - Located approximately 70 km from Gediktepe, with ACG's existing mining contractor already established at the META site and connecting infrastructure in place.
- Mining and gold production are targeted to commence in mid-2027 after residual leaching of the material currently on the heap is complete, subject to permitting.
Artem Volynets, Chairman and Chief Executive Officer of ACG, said:
"The acquisition of Keşkek provides an attractive opportunity to extend our gold production profile by securing a nearby source of gold-bearing oxide ore that can be processed using existing infrastructure at Gediktepe. This will enable ACG to continue primary gold production in addition to production of copper and zinc concentrates from our own sulphide ores via the flotation facility that we are just starting to ramp up.
The Project is a clear example of our disciplined approach to identifying value-accretive growth opportunities that leverage our existing infrastructure and operating capabilities and generate additional cash flow."
Acquisition Terms
ACG will acquire the Licence from META for cash consideration of
The consideration comprises: (i)
In addition, META will receive a
Total Project acquisition, phased exploration and closure expenditure is estimated at approximately
Project Overview and Development
The Keşkek pit, defined by the META technical team and verified by ACG's technical team, contains approximately 300 kt grading 0.90 g/t Au at an estimated waste-to-ore strip ratio of 1:1. It will provide the initial source of additional oxide feed for ACG's existing heap-leach facility.
Metallurgical testwork undertaken by ACG supports the planned processing routes, indicating column-leach gold recoveries of 75–
The Project will leverage Gediktepe's existing infrastructure. Ore will be transported to Gediktepe via paved and gravel haulage routes. Uluova, ACG's existing mining contractor, is already established at the META site, supporting efficient trucking operations. Transport costs are expected to benefit further from Keşkek's location along ACG's existing concentrate offtake route, creating potential synergies with concentrate deliveries.
Mining and gold production are targeted to commence in mid-2027, by which time ACG expects all recoverable gold and silver from the material currently under heap leach to have been recovered. Production from Keşkek is expected to extend the operating life of Gediktepe's gold production circuit by several years.
Further Resource and Exploration Upside
The Mining Licence covers 666 hectares and contains an internally estimated indicated mineral resource of 1.5 Mt grading 0.65 g/t Au, including the defined Keşkek pit.
Technical review by ACG and Ridge Minerals has identified potential for further exploration targeting an additional 5–10 Mt of mineralisation grading 0.7–1.0 g/t Au within the Licence area, subject to further drilling. ACG's Facility is expected to have sufficient capacity to handle increased oxide throughput should additional ore reserves be delineated.
There is no certainty at this stage that further exploration will result in Mineral Resources.
Inside information
The information contained within this announcement is considered by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No.596/2014 (as it forms part of
Forward looking statements
This announcement may contain certain "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements"). Forward-looking statements are identified by their use of terms and phrases such as "believe", "targets", "expects", "aim", "anticipate", "project", "would", "could", "envisage", "estimate", "intend", "may", "plan", "will" or the negative of those, variations or comparable expressions, including references to assumptions. The forward-looking statements in this announcement are based on current expectations and are subject to known and unknown risks and uncertainties that could cause actual results, performance and achievements to differ materially from any results, performance or achievements expressed or implied by such forward-looking statements. Factors that may cause actual results to differ materially from those expressed or implied by such forward looking statements. These forward-looking statements are based on numerous assumptions regarding the present and future business strategies of the Group and the environment in which it is and will operate in the future. All subsequent oral or written forward-looking statements attributed to the Company or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. Each forward-looking statement speaks only as of the date of this announcement. Except as required by applicable law, regulatory requirement, the UK Listing Rules and the Disclosure Guidance and Transparency Rules, neither the Company nor any other party intends to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
The person responsible for the release of this information on behalf of the Company is Artem Volynets, Chief Executive Officer.
For further information please contact:
Thirty Three Communications
Communications Advisor
acgmetals-client-success@thirtythreecomms.com
Berenberg
Research Analysts
Richard Hatch
+44 (0) 20 3753 3070
Joint Broker
Jennifer Lee
+44 (0) 20 3207 7800
Canaccord
Research Analysts
Tim Huff +44 (0) 20 7523 8374
Joint Broker
James Asensio /Rory Blundell / Charlie Hammond
+ 44 (0) 20 7523 4680
Stifel
Research Analysts
Alex Bedwany +44 (0) 7788 392045
Joint Broker
Ashton Clanfield / Varun Talwar
+44 (0) 20 7710 7600
Cantor Fitzgerald
Research Analysts
Puneet Singh +1 (416) 350-8153
About the Company
ACG is a company with a vision to build a global, high-margin, copper-focused producer with safe, efficient, and sustainable operations.
In September 2024, ACG successfully completed the acquisition of the Gediktepe mine. Since then, the Company has transformed the operation from a gold and silver producer into a copper producer, achieving first concentrate production in August 2026. Gediktepe is targeting annual steady-state copper equivalent production of 20-25 kt from flotation processing facility, which is currently ramping up. This target excludes additional oxide production and expected future production from its enriched ore treatment project, which is currently under development.
ACG's team has extensive M&A experience built through decades spent at blue-chip multinationals in the sector. The team brings a significant network as well as a commitment to ESG principles and strong corporate governance.
LON: ACG | OTCQX: ACGAF | LON: ACGW | Xetra: ACG | Bond ISIN: NO0013414565
For more information about ACG, please visit: www.acgmetals.com
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SOURCE ACG METALS LIMITED
FAQ
What are the detailed payment terms for ACG’s acquisition of the Keşkek licence?
The total cash consideration is US$7.85 million. This comprises US$4.0 million payable following execution of the definitive agreement and approval of the licence transfer by the General Directorate of Mining and Petroleum Affairs, which is expected to conclude in October 2026, and US$3.85 million linked to the Environmental Impact Assessment permitting process, which is expected to conclude by mid-2027.
What royalties or contingent payments will META receive from the Keşkek project?
META will receive a 1% gross revenue royalty on gold mined from the Licence area. In addition, ACG will pay US$60 per ounce for additional gold discovered and converted to ore reserves outside the defined Keşkek pit.
How will ore from Keşkek be integrated into ACG’s existing operations?
Ore from Keşkek will be trucked about 70 km to the Gediktepe heap leach facility via paved and gravel haulage routes. Higher-grade ore is planned to be processed through the heap leach facility, while lower-grade material is expected to be stockpiled for later processing at ACG’s Enriched Ore plant. ACG’s existing mining contractor, Uluova, is already established at the META site, supporting trucking operations.
What exploration upside has ACG identified at the Keşkek licence?
ACG and Ridge Minerals have identified exploration potential for an additional 5–10 Mt of mineralisation grading 0.7–1.0 g/t Au within the Licence area, subject to further drilling. The company states that there is no certainty at this stage that further exploration will result in Mineral Resources, but indicates that the Gediktepe facility is expected to have sufficient capacity if additional oxide reserves are delineated.