Conroy Gold and Natural Resources PLC deal with Demir applauded by research house

’s () 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.