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Ariana rockets as it inks MoU on partnership with major Turkish construction group

Under the agreement, Ariana will sell stakes in its Salinbas and Kiziltepe projects, bringing in US$55mln and US$8mln in equity to fund production

Ariana Resources PLC - Ariana rockets as it inks MoU with major Turkish construction group
Ariana's projects are located in Turkey's 'Hot Gold Corridor'

Ariana Resources PLC (LON:AAU) shares rocketed on Monday after it agreed a potential partnership deal with a major Turkish construction firm for a number of its projects in the country.

The AIM-listed explorer said the proposed deal, outlined in a memorandum of understanding (MoU), will involve the sale of 17% of its Salinbas gold project for US$5mln.

READ: Ariana's flagship Kiziltepe mine enjoys a record quarter of gross income

The deal also proposes the sale of 53% of Zenit, Ariana’s joint venture (JV) with Turkish group Proccea which operates the Kiziltepe mine, for US$50mln to be split between the JV partners equally, as well as an US$8mln cash injection by the proposed partner to help bring the project into production.

Kerim Sener, Ariana’s managing director, said the partnership, if approved, “will create a formidable exploration, development and production group focused on Turkey”.

“This [MoU] will combine the unique skill-sets of each Partner in a mutually beneficial and synergistic manner. We look forward to advancing the proposed MoU into a joint venture capable of unlocking the full value of our assets in Turkey, which will also target the development of a future pipeline of high-value production projects.”

The company expects to secure binding agreements and shareholder approval for the partnership no later than February next year.

The news sent Ariana’s shares soaring 33.3% higher to 2.8p in early afternoon.

Quick facts: Ariana Resources PLC

Price: 5.675 GBX

Market: AIM
Market Cap: £60.31 m

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