Ariana Resources PLC MAIDEN DIVIDENDS FROM SUBSIDIARY (6278H)
March 26 2020 - 3:00AM
UK Regulatory
TIDMAAU
RNS Number : 6278H
Ariana Resources PLC
26 March 2020
26 March 2020
AIM: AAU
MAIDEN DIVIDENDS FROM SUBSIDIARY
Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed
exploration and development company operating in Europe, is pleased
to announce a financial update for the Company.
Following the receipt of funds from Zenit Madencilik San. ve
Tic. A.S. (owner of the Kiziltepe gold-silver mine), the Company
advises that it has recently received its maiden dividends from its
wholly-owned Turkish operating subsidiary Galata Madencilik San. ve
Tic. Ltd. ("Galata"), following a declaration of profit by Galata.
A total of GBP1,600,000 has been transferred to Ariana.
Dr. Kerim Sener, Managing Director, commented:
"The maiden dividends from Galata represent the culmination of
many years of effort by the Company and mark the moment that its
subsidiary became the cash-generative engine of growth for the
Group.
"Since early 2018, Galata has received a total of US$7.3 million
from Zenit to repay intercompany loans and as partial dividend
payments, as a result of its profitable gold mining operations at
Kiziltepe. Ahead of the March 2020 AGM of Zenit, all outstanding
dividend payments declared by Zenit were paid to Galata. This has
enabled Galata to repatriate profits to its parent company in the
form of dividends."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Summary of Project
The Kiziltepe operation is currently expected to deliver
approximately an average of 20,000 oz gold equivalent per annum
over eight years of initial mine life, for a total of up to 160,000
oz gold equivalent based on current resources. The operating
company, Zenit Madencilik San. ve Tic. A.S. (50:50 JV between
Ariana and Proccea) will continue to make repayments against its
loan from Turkiye Finans Katilim Bankasi A.S. based on a
contractual schedule. Construction capital loan repayments will
have been completed by April 2020 and, during this time, excess
cash-flow from the operation is being used to make proportional
repayments of loans provided by Ariana and Proccea jointly to the
JV for exploration and development respectively. After the
repayment of all loans, profits from the operation will be shared
on a 51:49 basis between Ariana and Proccea respectively.
Commercial production was initiated at Kiziltepe during July
2017 and formal quarterly production reporting commenced. The
Company also completed a new resource estimate for the project
based on recent drilling and geological interpretation. Detailed
technical and economic assessments will be completed on several
satellite vein systems which are not currently in the mining plan,
in anticipation of these being developed in future years. The
Company is currently targeting a minimum ten-year mine life, which
will require the addition of a further 40,000 oz gold equivalent in
reserves outside of the four main pits (Arzu South, Arzu North,
Banu and Derya) that are currently scheduled to be mined.
Management is confident that this can be achieved assuming the
conversion of existing resources to reserves.
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
James Stearns / Atholl Tweedie
Yellow Jersey PR Limited Tel: +44 (0) 20 3004
9512
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
total of 1.6 million ounces of gold and other metals (as at
end-2017).
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 resource inventory at the Project and its
wider area is c. 605,000 ounces of gold equivalent (as at
end-2017). 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 million ounces of
gold equivalent. The project comprises three notable licence areas:
Salinbas, Ardala and Hizarliyayla, all of which are located within
a multi-million ounce Artvin Goldfield. The "Hot Gold Corridor"
contains several significant gold-copper projects including the
4Moz 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"). Venus is focused on the exploration and development
of copper-gold assets in Cyprus.
Panmure Gordon (UK) Limited are broker to the Company and
Beaumont Cornish Limited is the Company's Nominated Adviser.
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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