Exploration and development firm Stratex International has secured a forest permit to develop the Altintepe gold project in Turkey.
All construction through to gold production and first net cashflow will be financed by Bahar Madencilik Sinayi ve Ticaret Ltd Sti, which is a 55% partner in the project, with Stratex holding the remaining 45%.
After starting production, Bahar will receive 80% of the net cashflow until it has recovered its investment, with 20% of net cash payable to Stratex.
Net cash will be disbursed on the basis of 55% to Bahar and 45% to Stratex.
Bahar has a minimum production target of 30,000oz a year. The company has said that the site is already being cleared to facilitate construction, which is anticipated to take about six months.
The approval of the environmental impact study, which was prepared by Golder Associates (Turkey), was secured in 2013.
Stratex International chief executive officer Bob Foster said the forest permit was the final regulatory hurdle facing the project.
"Bahar have already commenced clearing of the site to facilitate construction and, following a site visit and project review with Bahar in April, we anticipate providing the market with further details of project planning and timelines," Foster said.
"This is a major step in the transition of Stratex to being a gold-producing company and allows us to plan for the future with even more confidence."
Stratex has discovered more than 2.2 million ounces of gold to date, as well as 7.9 million ounces of silver and 186,000t of copper.