GÜBRETAŞ Partners with Ziraat Bankası

Signatures on the cooperation and credit agreement for the preparatory phase of the Söğüt Gold Mining Project were affixed at a ceremony held at the Tarım Kredi building, attended by Tarım Kredi General Director and GÜBRETAŞ Mining Investments Chairman Fahrettin Poyraz and Ziraat Bank General Director Alpaslan Çakar. At the ceremony, Poyraz said they had signed a protocol to advance their cooperation with Ziraat Bank specifically regarding the Söğüt Gold Mine. Noting that Ziraat Bank and Tarım Kredi rank among the most important actors in Turkish agriculture, Poyraz drew attention to the active role both organizations play in financing agriculture.

Poyraz said:

"Our cooperation is not limited to agriculture alone. Under Turkey's developing conditions, we develop joint projects in different sectors whenever opportunities arise. Today, we have gathered to discuss financing for the Söğüt Gold Mining Project, established as a subsidiary of GÜBRETAŞ, the largest subsidiary of Tarım Kredi. A limit allocation of USD 135 million has been made for use this year. God willing, in the periods ahead, just as in all our other activities, we will cooperate under the leadership of Ziraat Bank to meet the financing needs for operating the Söğüt Gold Mining field and carrying out investments."

"We plan to produce approximately 6-7 tons of gold annually"

Poyraz provided information that they are projecting USD 450 million in investment for the gold mine, saying, "In the work areas at two separate ore fields, Akbaştepe and Korudanlık, God willing, after we complete the processes quickly and move to production, we plan to produce approximately 6-7 tons of gold annually. Speaking with current figures, we are talking about a production amount of approximately 15 percent of the total annual gold production in Turkey." Çakar stated that Ziraat Bank wishes to participate in all projects that will contribute to production, investment, employment and exports. Çakar, drawing attention to gold imports sometimes rising significantly in Turkey and their negative impact on the current account, said this project would make a positive contribution to the current account and employment. Çakar said, "This is a project for gold extraction and processing. We have made our plans to participate throughout the entire project."

3.5 million ounces of gold resource reported

The mine discovered at the GÜBRETAŞ site and transferred to a private company for operation in 2008 was cancelled because the company failed to fulfill its obligations. After the legal process was completed in December 2019, all rights to the field were registered in GÜBRETAŞ's name. In March of this year, the license area was transferred to GÜBRETAŞ Mining Investments. As a result of surveys conducted at the mining field, a total of 3.5 million ounces of gold resource has been reported, with 1 million 920 thousand ounces in reserves.