Zenith Secures US$543K From Kavaklitepe Disposal, Eyes Aussie Gold Growth

Regulatory Green Light for Kavaklitepe Disposal

Zenith Minerals Limited has reached a significant milestone in its strategic portfolio reshaping with the receipt of Turkish regulatory approval from the General Directorate of Petroleum and Mining Affairs (MAPEG) for the disposal of its 20% stake in the Kavaklitepe Gold Project. This approval clears the last hurdle for the share transfer to Gübretaş Maden Yatırımları A.Ş., a key player expanding its footprint in Turkey's gold sector.

The transaction, valued at approximately US$543,000 (around A$830,000), is secured by an unconditional bank guarantee, providing Zenith with a strong assurance of payment. While the company prudently notes that absolute certainty on fund receipt cannot be guaranteed, the imminent completion signals a near-term boost to Zenith’s liquidity.

Strategic Reallocation of Capital

This divestment aligns with Zenith’s ongoing commitment to focus on its core Australian gold assets, particularly the Consolidated Dulcie Gold Project in Western Australia and the Red Mountain Copper-Gold Project in Queensland. The proceeds, combined with the recent A$3.5 million Rights Issue, will underpin accelerated exploration and development activities, aiming to unlock further resource potential and enhance shareholder value.

Zenith’s Managing Director, Andrew Smith, highlighted the transaction as a pivotal step in portfolio management, enabling the company to concentrate resources on projects with near-term development opportunities. The Consolidated Dulcie project, with its recently updated resource estimate showing a 41% increase in contained gold, stands out as a flagship asset poised for growth.

Background and Broader Context

Zenith’s 20% interest in Kavaklitepe dates back to 2013, acquired through the purchase of S2M2 Coal Pty Ltd. The majority stake was held by Teck Resources until 2022, when Gübretaş took over, seeking to consolidate exploration efforts around its Sogut Gold Project. Zenith’s exit from this Turkish asset reflects a strategic pivot towards jurisdictions where it holds greater operational control and upside.

Beyond gold, Zenith maintains optionality in battery minerals through its lithium projects and holds a free-carried interest in the Earaheedy Zinc-Lead-Silver Project, indicating a diversified approach to resource exploration. The company’s disciplined capital management and recent fundraising efforts position it well to pursue its growth ambitions.

Looking Ahead

With regulatory approval secured and completion imminent, Zenith is set to strengthen its financial base and sharpen its focus on advancing exploration in Australia’s premier mining regions. Investors will be watching closely how the company deploys these funds to convert exploration potential into tangible resource growth and value creation.