ACG Metals to acquire Keşkek gold project

ACG Metals (LON: ACG) has entered a binding agreement with Meta Nikel Kobalt Madencilik Sanayi ve Ticaret A.Ş. to acquire 100% of a Turkish Mining licence that contains the Keşkek gold project, for over $7 million. 

ACG will initially pay $4 million for the license, and pay the following $3.85 million in mid-2027 upon first gold production.

Production from Keşkek is expected to prolong the operating life of ACG’s Gediktepe gold production by many years. The additional gold capacity from Keşkek has the potential to double ACG’s annual production of copper equivalent from 20,000 tonnes to 40,000 tonnes.

“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,” Artem Volynets, chairman and chief executive officer of ACG, said in a news release.

The license is for a 666 hectares area that includes the Keşkek gold project, located just 70 kilometers from ACG’s Gediktepe mine with connecting infrastructure for ore transportation already built between them. 

ACG will process gold from Keşkek using its heap leach infrastructure, which has increased gold recoveries to about 85%.

ACG recently produced its first copper concentrate in their Gediktepe mine, which marked another step of their transition from precious metals and zinc to copper.