ACG Metals (LSE:ACG) has entered a binding agreement to acquire mining licence 60926, containing the Keşkek gold project, from Meta Nikel Kobalt Madencilik Sanayi ve Ticaret A.Ş.
The deal comprises an initial $4 million cash payment plus up to $3.85 million in deferred consideration tied to permitting progress, alongside a 1% gross revenue royalty to the seller on gold mined from the site.
Keşkek sits roughly 70km from ACG's Gediktepe mine and is expected to extend the life of its heap leach facility by several years once the mine's own oxide ore runs out.
ACG's technical team estimates a wider resource of 1.5 million tonnes at 0.65 g/t across the licence area, and exploration potential for 5-10 million tonnes at higher grades subject to further drilling.
Metallurgical testwork points to gold recoveries of 75-80%, rising to approximately 85% using Gediktepe's existing proprietary processing method.
"The acquisition of Keşkek provides an attractive opportunity to extend our gold production profile by securing a nearby source of gold-bearing oxide ore that can be processed using existing infrastructure at Gediktepe," said Artem Volynets, ACG's chairman and chief executive.
Total project spend, including acquisition, exploration and closure costs, is estimated at approximately $15 million over ten years.
Completion of the initial payment is linked to transfer approval from Türkiye's General Directorate of Mining and Petroleum Affairs, expected in October 2026, with mining targeted to start in mid-2027 once permitting concludes and residual leaching at Gediktepe finishes.
News Intelligence what this means for the company
ACG Metals is acquiring the Keşkek gold licence 70km from its Gediktepe mine for $4 million upfront plus up to $3.85 million in deferred payments, with mining to begin mid-2027 once Gediktepe's oxide ore stockpile is exhausted. The deal extends the life of Gediktepe's heap leach facility by several years using nearby oxide ore, but arrives as the company has just transitioned to copper and zinc concentrate production—a strategic pivot away from gold that the Keşkek acquisition partially reverses.
Keşkek provides a low-cost oxide ore feed to extend Gediktepe's processing life, but the $7.85 million total commitment (against $140 million net financial debt and $60 million cash as at 30 June 2026) is modest relative to the company's balance sheet. The deal's value hinges on permitting timelines—completion of the initial $4 million payment depends on Turkish regulatory approval expected October 2026, and mining start is contingent on residual leaching at Gediktepe finishing in mid-2027.
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