ACG Metals Limited has announced a significant step in its growth strategy by entering into a binding agreement with Meta Nikel Kobalt Madencilik Sanayi ve Ticaret A.Ş. to acquire 100% of mining licence 60926, which encompasses the Keşkek gold project in Türkiye. The acquisition, valued at an initial cash consideration of US$4 million, along with potential contingent payments, is set to enhance ACG’s gold production capabilities and extend the operational life of its existing facilities.
The Keşkek project, located approximately 70 km from ACG’s Gediktepe mine, covers an area of 666 hectares and is expected to provide a new source of oxide ore. This is particularly beneficial as it will allow ACG to utilise its heap leach facility for several more years, thereby maintaining gold production levels. The initial oxide feed is anticipated to come from the defined Keşkek pit, which contains approximately 300,000 tonnes grading 0.90 g/t Au, with an estimated waste-to-ore strip ratio of 1:1.
ACG’s technical team has estimated that the Keşkek Licence contains a mineral resource of 1.5 million tonnes grading 0.65 g/t Au, with further exploration potential for an additional 5–10 million tonnes of mineralisation grading 0.7–1.0 g/t Au. This potential is subject to further drilling, which could significantly enhance the project’s value. Metallurgical testwork conducted by ACG has shown promising gold recoveries of 75–80%, which could increase to approximately 85% when using the existing patented recovery process from Gediktepe.
The acquisition terms stipulate that ACG will pay a total of US$7.85 million for the Licence, with US$4 million due upon the execution of the definitive agreement and the remaining US$3.85 million contingent on the completion of the Environmental Impact Assessment permitting process, expected by mid-2027. Additionally, META will receive a 1% gross revenue royalty on gold mined from the Licence area, along with a payment of US$60 per ounce for any additional gold discovered outside the defined Keşkek pit.
Mining and gold production at the Keşkek project are targeted to commence in mid-2027, following the completion of residual leaching of material currently on the heap. This timeline aligns with ACG’s strategy to ensure a seamless transition in gold production, leveraging existing infrastructure and operational capabilities. The project exemplifies ACG’s disciplined approach to growth, focusing on value-accretive opportunities that generate additional cash flow and extend the company’s production profile.
Overall, the Keşkek acquisition not only secures a vital source of oxide feed for ACG’s operations but also positions the company for future exploration and resource expansion, enhancing its standing in the competitive gold mining sector.