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Gold & silver

Ariana Resources PLC's partner commits to Red Rabbit

Proccea has also committed to another US$2.1mln to take its final stake to 50%.

Ariana Resources PLC’s (LON:AAU) partner in the Red Rabbit gold project, Proccea, now owns 42% of the joint venture having spent a further US$2.4mln over the past twelve months.

Proccea has also committed to another US$2.1mln to take its final stake to 50%.

The Turkish firm is building the gold mine at Kiziletpe for the venture and will soon be start to draw on the US$33mln construction finance facility in place.

Production is expected to start in the second half of 2016.

Kerim Sener, Ariana’s managing director, said construction at Kiziltepe was making excellent progress.

To date, Proccea has spent approximately US$5.9mln on the joint venture since its inception in August 2010.

It has to spend US$8mln on the project to earn-in to 50% of the joint venture.

Ariana shares reased 2% lower to 1.12p.

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