Zenith Minerals set for sale of stake in Turkish gold asset for US$543,000

Zenith Minerals has reached a binding agreement to sell its 20% stake in the Kavaklitepe gold project in western Turkey for US$543,000 ($830,000).

The sale of Zenith’s 20% stake in Kavaklitepe will accelerate exploration of its Australian gold portfolio. Pic: Getty Images

• Zenith Minerals reaches binding agreement to sell 20% stake in Kavaklitepe gold project for US$543,000

• Turkish government approval for sale expected within the next 14 days

• Proceeds will be used to accelerate exploration of its Australian gold portfolio

Special Report: Zenith Minerals will bank US$543,000 ($830,000) from the sale of its remaining 20% interest in the Kavaklitepe gold project in western Turkey under a binding agreement with buyer GübretaÅŸ Maden Yatırımları AS.

It follows on the two parties entering into a non-binding heads of agreement relating to the sale in late March 2025.

The application for the share transfer has now been lodged with Turkey’s General Directorate of Petroleum and Mining Affairs (MAPEG) with approval expected within the next 14 days.

Zenith Minerals (ASX:ZNC) has already been granted an unconditional bank guarantee equal to the full purchase price ensuring that the sale will go ahead.

Payment and formal completion of the sale is expected during the current June 2025 quarter.

“This divestment aligns with our disciplined approach to portfolio optimisation and value creation,” managing director Andrew Smith said.

“Our focus remains squarely on recent gold discoveries in Australia, particularly Dulcie Far North and Red Mountain, where exploration is currently advancing.

“The sale significantly strengthens Zenith’s financial position, enabling us to accelerate exploration and maximise shareholder value throughout 2025.”

Sale and proceeds

ZNC had acquired the stake in December 2013 as part of the broader acquisition of S2M2 Coal.While significant work was carried out by the operators since then, the company opted not to fund future exploration as the Kavaklitepe project is advancing towards more capital-intensive phases that are outside its strategic priorities.

Proceeds from the sale will be used to fund ZNC’s core gold portfolio, which includes the Dulcie Far North and Red Mountain projects in Australia.

It recently completed a 40-hole reverse circulation drill program which extended the strike length of mineralisation and identified new stacked lodes at Dulcie Far North.

Work is currently underway on an updated JORC resource estimate.

This article was developed in collaboration with Zenith Minerals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Zenith Minerals set for sale of stake in Turkish gold asset for US$543,000