TIDMAAU
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 arianaresources@yellowjerseypr.com
Wilkinson
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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END
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