Net Smelter Return Agreement Signed between Kenz Madencilik and Polimetal

Rhea-AI Summary

ACG Metals (OTC:ACGAF) announced that subsidiary Polimetal has secured a 2% Net Smelter Return (NSR) royalty over a mining licence area in Niğde Province, Çamardı District, Türkiye, effective from an agreement dated Oct 9, 2025.

The NSR originates from a 2012 joint operation and option agreement with Kenz Madencilik, where Kenz received USD 150,000 and committed to exploration expenditures while Polimetal retained an option to acquire the NSR. The signed NSR entitles Polimetal to 2% of gross mineral sale revenues, net of standard deductions, for the full operational life of the project. The licence is currently under exploration for precious metals and other mineralisation, giving ACG exposure to future cash flows without direct exploration or operational costs.

Positive

• Secured a binding 2% NSR royalty on the Niğde licence
• Future cash flow exposure without direct exploration or operating capital

Negative

• Licence remains in exploration stage, so no guaranteed near-term revenue
• Original transfer consideration was USD 150,000, indicating limited upfront cash realization

LONDON, Oct. 9, 2025 /PRNewswire/ -- 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.

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:
Palatine
Communications Advisor
Conal Walsh / James Gilheany/ Kelsey Traynor/ Richard Seed
acg@palatine-media.com

Berenberg 
Research Analysts
William Dalby +44 (0) 20 3753 3243
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 / Charlie Hammond
+ 44 (0) 20 7523 80

Stifel
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 Metals is a company with a vision to consolidate the copper industry through a series of roll-up acquisitions, with best-in-class ESG and carbon footprint characteristics.

In September 2024, ACG successfully completed the acquisition of the Gediktepe Mine which is expected to transition to primary copper and zinc production from 2026 and will target annual steady-state copper equivalent production of 20-25 kt. Gediktepe sold 57koz of AuEq in 2024.

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

 

View original content:https://www.prnewswire.com/news-releases/net-smelter-return-agreement-signed-between-kenz-madencilik-and-polimetal-302579659.html

SOURCE ACG METALS LIMITED

FAQ

What does ACGAF announce on October 9, 2025 regarding Türkiye assets?

Polimetal secured a 2% NSR royalty over a mining licence in Niğde Province, Çamardı District, Türkiye.

How was the 2% NSR to Polimetal created under the 2012 agreement with Kenz Madencilik?

The 2012 joint operation and option agreement transferred the licence to Kenz for USD 150,000 plus exploration commitments while Polimetal retained the option to acquire the NSR.

When will the 2% NSR generate payments to ACG Metals (ACGAF)?

The NSR pays 2% of gross mineral sales, net of standard deductions, for the operational life of the project, so payments occur only once minerals are sold.

Does the NSR require ACG Metals to fund exploration or operations?

No; the structure provides ACG with cash flow exposure without direct exploration investment or operational involvement.

What minerals is the licence targeting under current exploration?

The licence area is currently focused on exploration targeting precious metals and other mineralisation.