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Ariana Resources PLC - UPDATE ON PROPOSED JOINT VENTURE

RNS Number : 7753D
Ariana Resources PLC
30 October 2020
 

 

 

 

 

 

 

30 October 2020

AIM: AAU

UPDATE ON PROPOSED JOINT VENTURE

 

Ariana Resources plc ("Ariana" or the "Company"), the AIM-listed exploration and development company operating in Europe, is pleased to announce further progress on its proposed new joint venture with Özaltin Holding A.S., via its subsidiary, Özaltin Insaat, Ticaret and Sanayi A.S. (collectively "Özaltin") and with Proccea Construction Co. ("Proccea") (collectively "the Parties"). Özaltin will be acquiring 53% of both the Salinbas Project ("Salinbas") and the existing Zenit Madencilik San. ve Tic. A.S. ("Zenit") joint venture which is currently owned by Ariana in a 50:50 partnership with Proccea.

 

Proposed new joint venture with Özaltin and Proccea by way of a partial disposal of the interests of the Company in Zenit and Salinbas in exchange for US$35.75 million in cash ("the Transaction" or "the Joint Venture").

 

Highlights:

 

·    The Parties are undertaking an all-parties meeting today to finalise the terms of the definitive joint venture agreements governing the Transaction.

 

·    The agreements will be conditional inter alia on Ariana shareholder approval, following the publication of a Circular to Shareholders and the satisfactory completion of a General Meeting of the Company.

 

The Transaction terms are anticipated to remain substantially the same as those summarised in the announcement of 25 November 2019, retaining certain structural changes, as detailed in the announcement of 29 September 2020.

·    In the announcement of 29 September 2020, Ariana stated that it intended to distribute a circular to Shareholders to convene a General Meeting seeking approval for the transaction during October. As described above, the transaction is progressing but it is now anticipated that the Circular will be distributed when considered appropriate to do so.

Dr. Kerim Sener, Managing Director, commented:

 

"We are a further step closer to the completion of the agreements governing our proposed new joint venture in Turkey. Almost all of the necessary government approvals in Turkey have now been received, with only two important outstanding processes remaining, notably the application to the Competition Authority. At this time, we are expecting that these processes, which are conditions precedent to the Transaction, will conclude following the signing of the joint venture agreements.

 

"There is no doubt that current circumstances, particularly travel restrictions and general uncertainty, have introduced limiting factors on our ability to conclude the agreements during the year. However, the Parties have remained focused on taking methodical and measured steps towards the completion of the agreements and we are collectively looking forward to finalising this process as soon as possible."

 

Current Developments and Conditions Precedent to Completion:

 

·    Circular for distribution to Ariana shareholders under preparation and awaiting the finalisation of the definitive joint venture agreements.

 

·    Approvals are being sought from the General Directorate of Mining and Petroleum Affairs regarding the expected change of ownership of the Salinbas licences following completion of the Transaction.

 

·    Formal application has been prepared for submission to the Competition Authority in Turkey, seeking approval for the Transaction.

 

·    Relevant Powers of Attorney are under preparation for the completion of the agreements in Turkey by the representatives of the Company.

 

·    Environmental Impact Assessment scoping study on Salinbas recently completed by SRK Consulting.

 

 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

Contacts:

 

Ariana Resources plc

Tel: +44 (0) 20 7407 3616

Michael de Villiers, Chairman


Kerim Sener, Managing Director




Beaumont Cornish Limited

Tel: +44 (0) 20 7628 3396

Roland Cornish / Felicity Geidt




Panmure Gordon (UK) Limited

Tel: +44 (0) 20 7886 2500

John Prior / Hugh Rich / Atholl Tweedie




Yellow Jersey PR Limited

Tel: +44 (0) 7951 402 336

Dom Barretto / Joe Burgess / Henry Wilkinson

[email protected]

 

 

Editors' Note:

 

About Ariana Resources:

 

Ariana is an AIM-listed mineral exploration and development company operating in Europe.  It has interests in gold production in Turkey and copper-gold assets in Cyprus.  The Company is developing a portfolio of prospective licences in Turkey, which contain a depleted total of c. 2.1 million ounces of gold and other metals (as at July 2020). 

 

The Red Rabbit Project is comprised of the Company's flagship assets, the Kiziltepe and Tavsan gold projects, and is part of a 50:50 Joint Venture with Proccea Construction Co.  Both assets are located in western Turkey, which hosts some of the largest operating gold mines in the country and remains highly prospective for new porphyry and epithermal deposits.  The Kiziltepe Sector of the Red Rabbit Project is fully permitted and is currently in production.  The total depleted resource inventory at the Project and its wider area is c. 500,000 ounces of gold equivalent (as at April 2020).  At Kiziltepe a Net Smelter Return ("NSR") royalty of up to 2.5% on production is payable to Franco-Nevada Corporation. At Tavsan an NSR royalty of up to 2% on future production is payable to Sandstorm Gold.

 

The 100% owned Salinbas Gold Project is located in north-eastern Turkey and has a total resource inventory of c. 1.5 million ounces of gold.  The project comprises three notable licence areas: Salinbas, Ardala and Hizarliyayla, all of which are located within the multi-million ounce Artvin Goldfield.  The "Hot Gold Corridor" contains several significant gold-copper projects including the 4 million ounce Hot Maden project, which lies 16km to the south of Salinbas and 7km south of Hizarliyayla.  A NSR royalty of up to 2% on future production is payable to Eldorado Gold Corporation on the Salinbas Gold Project.

 

Ariana is also earning-in to 50% of UK-registered Venus Minerals Ltd ("Venus") and has to date earned into an entitlement to c. 12%.  Venus is focused on the exploration and development of copper-gold assets in Cyprus, which includes the Magellan Project on which a resource of 8.5Mt @ 0.63% Cu (+ Au, Ag, Zn) has been defined.

 

Panmure Gordon (UK) Limited is broker to the Company and Beaumont Cornish Limited is the Company's Nominated Adviser and Broker.

 

For further information on Ariana you are invited to visit the Company's website at www.arianaresources.com.

 

 

Ends.

 

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