Bass Metals signs on for Turkish joint venture

THE BOURSE WHISPERER: Bass Metals (ASX: BSM) has signed a non-binding memorandum of understanding (MoU) with a private Turkish group.

Under the MoU the two companies intend to acquire, explore and develop mining projects in Turkey through a 50:50 Turkish joint venture company structure.

Bass said the signing of the agreement follows the company’s evaluation of Turkish mining opportunities after it identified the country as being underexplored but with favourable geology, a progressive minerals and commercial policy framework as well as being well endowed with high-quality regional infrastructure.

The Turkish partner to the MoU is a private group of investors Bass referred to as Turkey Mining Co. (TMCo), which apparently is a group of people claiming to have strong mining, business and political connections in the country.

The strategic alliance between Bass and TMCo is anticipated to entail:

–    An equal funding model between Bass and TMCo supporting the creation of the TJVC;

–    A business building process for which Bass has the funds to advance opportunities to a meaningful stage, without committing an excessive amount of its current capital; and

–    Bass contributing exploration and mining skills and TMCo contributing projects and local operating experience.

“This is a low cost initiative for Bass to start an ongoing business building process in a terrain renowned for large scale, high-grade polymetallic deposits,” Bass Metals managing director Mike Rosenstreich said in the company’s announcement to the Australian Securities Exchange.

“Turkey features well in the latest Fraser Institute survey ranking 22 out of 96 for the index of Mineral Potential, that’s higher than Ghana at 23rd and many of the Australian states and territories.

“TMCo is a strong local partner with substantial financial capacity, long-term generational mining industry relationships and deep political connections through its key shareholders.

“Bass and TMCo have a common vision to create a significant local mining company by establishing a project pipeline, which in time is planned to include production assets.”