Ariana Resources gets second boost from Turkish govt

The Turkish authorities really seem to be getting behind Ariana Resources’ (LON:AAU) Kiziltepe project in the west of the country. Last week it signed off the all-important forestry permit, paving the way for construction and ultimately production. Now it has awarded the the operation strategic investment status. Practically, this means an additional 50% reduction in corporation tax and exemptions from customs duties and VAT on imported components and equipment. Last Monday Ariana’s shares soared 40% after it said it been granted a forestry permit for the Red Rabbit Gold Project. This was the green light for it and local partner Proccea to begin construction of the Kiziltepe mine, which will produce 21,000 ounces of the precious metal a year. The build programme will be funded by a US$33mln finance facility. Proccea is in the process of compiling a revised timeline. The financial models will also be altered to include the latest incentives. Chairman Michael de Villiers told investors: "We are delighted to have received strategic investment status following the recent approval of our forestry permits. “These enhanced incentives demonstrate support for our mine development by the Turkish Government, ensuring improvements to the economics of Kiziltepe while encouraging new exploration. “This is a win-win for the company and for Turkey as new resources are discovered and mined."