Zenith’s Turkish Divestment Signals Shift Amid Capital-Intensive Project Challenges

Strategic Divestment in Turkey

Zenith Minerals Limited (ASX: ZNC) has taken a decisive step in reshaping its portfolio by executing a binding Share Transfer Agreement to sell its remaining 20% interest in the Kavaklitepe Gold Project in western Turkey. The buyer, Gübretaş Maden Yatırımları A.Ş., is advancing the project with plans for further exploration and resource expansion.

The transaction, valued at US$543,000 (approximately A$830,000), follows an earlier non-binding agreement and now awaits final regulatory approval from Turkey’s General Directorate of Petroleum and Mining Affairs (MAPEG). Zenith expects this approval within the next two weeks, with formal completion and payment anticipated during the June quarter of 2025.

Ending Obligations and Strengthening Focus

Completion of the sale will relieve Zenith of all financial obligations and liabilities tied to the Kavaklitepe project, allowing the company to channel resources more effectively. Managing Director Andrew Smith highlighted that this divestment aligns with Zenith’s disciplined approach to portfolio optimisation, enabling a sharper focus on its core Australian gold assets.

Zenith’s key projects, Dulcie Far North in Western Australia and Red Mountain in Queensland, have recently shown promising exploration results. The company has just completed a 40-hole drilling program at Dulcie Far North, with assay results released in May 2025 and an updated mineral resource estimate underway. These developments underscore Zenith’s commitment to advancing projects with near-term development potential.

Context and Future Outlook

Zenith originally acquired its stake in Kavaklitepe in 2013 but chose to exit as the project moved into more capital-intensive phases outside its strategic priorities. Meanwhile, Gübretaş Maden, having acquired the majority interest in 2022, is actively progressing exploration efforts, including securing forestry permits and planning infill drilling.

With the Turkish asset sale proceeds secured, Zenith is positioned to accelerate exploration activities domestically, potentially enhancing shareholder value throughout 2025. The company also maintains interests in battery minerals and zinc-lead-silver projects, but gold exploration remains its primary focus.