TIDMAAU
RNS Number : 3078P
Ariana Resources PLC
17 February 2021
17 February 2021
AIM: AAU
COMPLETION OF TRANSFORMATIONAL JOINT VENTURE
Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed
exploration and development company operating in Europe, is pleased
to announce the completion of its transformational joint venture
("Joint Venture" or "JV") with Ö zaltin Holding A.S. (" Ö zaltin")
and Proccea Construction Co. ("Proccea"), following the
satisfaction of all conditions precedent.
Highlights:
-- JV formalised on the terms summarised on 7 December 2020,
ratified by shareholders on 30 December and approved by the
Competition Authority in Turkey on the 19 January 2021.
-- Expanded Joint Venture with Özaltin and Proccea involves the
partial disposal of the Company's interests in Turkey in exchange
for US$37.75 million in cash before costs and taxation (inclusive
of the sale of the Satellite Projects).
-- Ariana and Proccea retain a 23.5% interest each in the
expanded Joint Venture, with Ö zaltin owning 53%.
-- US$8 million being committed by Özaltin to a Feasibility
Study, Environmental Impact Assessment and additional permitting at
the Salinbas Project.
-- Process plant expansion at Kiziltepe well underway, with completion expected in H2 2021.
-- Drilling programme to test vein extensions at Kiziltepe ongoing.
Dr. Kerim Sener, Managing Director, commented:
" This Joint Venture represents the most significant development
in the Company's history and we look forward to building on our
enhanced position while continuing to deliver on our objective to
provide significant value for shareholders. This JV validates our
successful strategy of simultaneously creating value and mitigating
business risks.
"We are exceptionally pleased to partner with Özaltin Holding
and to continue our excellent relationship with Proccea
Construction as we advance our collective interests at the
Kiziltepe Mine and the Tavsan and Salinbas development projects.
These projects contain a combined total JORC Resource of 2.1
million ounces of gold, making our JV one of the most significant
gold mining ventures in Turkey.
"With our enhanced cash position of about GBP25 million,
following completion, this deal will catalyse further exploration
and development across Turkey and the wider region, as we pursue
project opportunities on behalf of the Joint Venture. We are
already advancing our interest in Venus Minerals and expect to
reach 50% ownership during 2021 while supporting its resource
development and exploration programmes in Cyprus. Separately, we
are progressing our assessment of several gold and copper-gold
projects elsewhere in Eastern Europe, for which we expect to
announce further developments during H1 2021.
"We look forward to updating the market on these and other
high-impact initiatives that will be advanced by the Company during
the coming months. In addition, we are advancing our plans to
distribute a substantial special dividend to reward our loyal
shareholders during 2021."
Mr. Muzaffer Ozdemir, CEO, Ö zaltin Holding A.S., commented:
"This is the beginning of an exciting new partnership and marks
the start of our first mining venture. We are ready to get off to a
flying start, having already spent several productive months
working with the Zenit JV team and developing our understanding of
the project portfolio. It is already very pleasing to see the pace
of development activities underway across all projects and
particularly at Kiziltepe, where a processing plant expansion is
already in progress and a new resource drilling programme is
advancing well."
Mr. Deniz Aybars, Managing Director, Proccea Construction Co.,
commented:
"For us, this new JV builds upon and enhances our decade-long
relationship with Ariana and, with the input of our new partners at
Özaltin, provides substantial opportunities to grow our mining
business both within Turkey and potentially further afield. Over
the years, we have recognised the capability of the Ariana
exploration team to identify and develop high-quality projects and
to define new opportunities, even on existing projects as seen with
Kiziltepe and Tavsan. We look forward to creating further value
together over the next 10 years."
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 with an exceptional track-record of
creating value for its shareholders through its interests in active
mining projects and investments in exploration companies. Its
current interests include gold exploration, development and
production in Turkey and copper-gold exploration and development
projects in Cyprus.
The Company holds a 23.5% interest in Zenit Madencilik San. ve
Tic. A.S. a joint venture with Özaltin Holding A.S. and Proccea
Construction Co. in Turkey which contains a depleted total of c.
2.1 million ounces of gold and other metals (as at July 2020). The
joint venture comprises the Kiziltepe Mine and the Tavsan and
Salinbas projects.
The Kiziltepe Gold-Silver Mine is located in western Turkey and
contains a depleted JORC Measured, Indicated and Inferred Resource
of 227,000 ounces gold and 0.7 million ounces silver (as at April
2020). The mine has been in profitable production since 2017 and is
expected to produce at a rate of c. 20,000 ounces of gold per annum
to at least the mid-2020s. A Net Smelter Return ("NSR") royalty of
2.5% on production is being paid to Franco-Nevada Corporation.
The Tavsan Gold Project is located in western Turkey and
contains a JORC Measured, Indicated and Inferred Resource of
253,000 ounces gold and 3.7 million ounces silver (as at June
2020). The project is being progressed through permitting and an
Environmental Impact Assessment, with the intention of developing
the site to become the joint venture's second gold mining
operation. A NSR royalty of up to 2% on future production is
payable to Sandstorm Gold.
The Salinbas Gold Project is located in north-eastern Turkey and
contains a JORC Measured, Indicated and Inferred Resource of 1.5
million ounces of gold (as at July 2020). It is located within the
multi-million-ounce Artvin Goldfield, which contains the "Hot Gold
Corridor" comprising several significant gold-copper projects,
including the 4 million ounce Hot Maden project, which lies 16km to
the south of Salinbas. A NSR royalty of up to 2% on future
production is payable to Eldorado Gold Corporation.
Ariana is also earning-in to 50% of UK-registered Venus Minerals
Ltd ("Venus") and has to date earned into an entitlement to 16%.
Venus is focused on the exploration and development of copper-gold
assets in Cyprus which contain a combined JORC Inferred Resource of
9.5Mt @ 0.65% copper (excluding additional gold, silver and
zinc).
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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