The Öksüt project was originally an exploration joint venture between Centerra and Stratex International Plc. In January 2013, Centerra purchased Stratex’s remaining 30% interest in the Öksüt Gold Project located in the Kayseri region of central Turkey for a $20 million cash payment and a 1% Net Smelter Return royalty on the project, subject to a $20 million cap. The closing of the transaction was conditional upon the granting of two operation licences by the Turkish authorities which occurred on January 16, 2013.
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 Güneytepe 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%. In January 2013, Centerra purchased Stratex’s remaining 30% to own 100% of the Öksüt Gold Project.