The Öksüt project was a joint venture between Centerra and Stratex International Plc. On December 12, 2012 Centerra entered into a binding Share Purchase Agreement for Stratex’s 30% interest in the Öksüt Gold Project located in the Kayseri region of central Turkey. Upon completion of the transaction, Centerra will own 100% of the Öksüt Gold Project. Consideration for Stratex’s interest in the project consists of a $20 million cash payment at closing and a 1% Net Smelter Return royalty on the project, subject to a $20 million cap. The closing of the transaction is conditional upon the granting of two operation licences for the project, which are currently under application (conversion from exploration licenses), and other conditions customary for a transaction of this nature.
The Öksüt Gold Project was discovered by Stratex International in early 2007. Reconnaissance rock chip sampling returned up to 0.113 g/t Au from silica ledges within altered andesitic volcanic rocks at what is now the Ortaçam deposit. In late 2007, Stratex made applications for tenements to cover the property and obtained a total of nine contiguous exploration licences covering 111.6 square kilometres.
Centerra and Stratex were parties to a joint venture arrangement, formed in 2009, to explore the Öksüt Gold Project. Centerra earned an initial 50% equity in the project by advancing $3 million to the joint venture through October 2011 and acquired an additional 20% interest in the project in October of 2012 with an additional contribution of $3 million, which brought its equity interest to 70%. Through November 2012, Centerra had advanced $6.8 million for exploration work on the Öksüt Gold Project. Upon completion of the transaction announced December 12, 2012, Centerra will own 100% of the Öksüt Gold Project.