Chesser Resources (ASX:CHZ) has completed the sale of the Kestanelik gold project in northwest Turkey for US$40 million, or net proceeds of A$42.05 million.
The company will now seek shareholder approval for a capital return of A$0.15 per share at the upcoming Annual General Meeting in Brisbane on 20 November.
If this is approved, Chesser will retain about A$8.9 million in cash to be used for working capital and to continue development of its Sisorta and Catak gold projects in Turkey.
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 3.53 grams per tonne and a total resource of 703,000 ounces of gold at 2.15g/t.
Other Projects
Sisorta has an Indicated Resource of 3.17 million tonnes at 0.9g/t gold (91,000 ounces) and an Inferred Resource of 11.38 million tonnes at 0.6g/t gold (212,000 ounces) for a total of 303,000 ounces at a 0.40g/t gold cut-off.
Chesser has a 51% interest in Sisorta.
It can also earn up to 100% in Catak where previous work has returned rock chip samples of up to 42.6 g/t gold and 10 metres at 1.53 g/t gold from shallow percussion holes.
The receipt of the sale proceeds leaves Chesser undervalued given the net proceeds of A$42.05 million, or about $0.19 per share, and its current market cap of $37.57 million and share price of $0.17.
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