News: Chesser Resources selling gold project in Turkey for US$40M

Chesser Resources (ASX:CHZ) has executed a non-binding agreement to sell its flagship Kestanelik Gold Project in northwesten Turkey to Turkish industrial conglomerate Nurol Holdings for US$40 million (A$42.5 million), or $0.1912 per share.

This is notable given the company’s current share price is just $0.13

The Letter of Intent proposes the sale of Chesser’s wholly-owned Turkish subsidiary Bati Anadolu Madencilik Sanayi Ve Ticaret A.S. that holds the mining licences, ancillary permits and other assets related to the Kestanelik Project.

Chesser’s interests in the Sisorta Project and the Catak Project will not be included in the proposed sale.

Nurol operates in the construction, defence manufacturing, energy, investment banking, mining and tourism industries.

Kestanelik is located about 10 kilometres southeast of the Dardanelles, and enjoys good access together with excellent infrastructure.

It has an Indicated Resource of 183,000 ounces of gold at a grade of 3.53g/t and a total resource of 703,000 ounces of gold at 2.15g/t.

Should the sale close, it will leave Chesser undervalued given the disparity between the Kestanelik sale price of $0.1912 per share and its current share price of $0.13.