Ariana Resources PLC Ariana Resources Plc : Completion Of Second Lithium Transaction
July 11 2016 - 5:28AM
UK Regulatory
TIDMAAU
11 July 2016
AIM: AAU
COMPLETION OF SECOND LITHIUM TRANSACTION
Ariana Resources plc ("Ariana" or "the Company"), through its 100%-owned
Australian subsidiary, Asgard Metals Pty. Ltd. ("Asgard"), has completed
the sale of its interests in a package of tenements in the Northern
Territory and Western Australia to Kingston Resources Limited (ASX:KSN)
("Kingston"), as announced on 17 May 2016.
Highlights:
-- Completion of the transaction has occurred following the satisfaction of
all conditions, including grant of the core tenement, Kingston
shareholder approval for the transaction and a A$6.85 million capital
raising by Kingston.
-- Completion of the initial cash payment to Asgard of A$20,000 and
6,600,000 fully paid ordinary shares in Kingston (currently valued at
A$132,000); Ariana now owns approximately 1% of Kingston.
-- Asgard to benefit from up to 7,200,000 performance shares which are to be
issued on the achievement of certain project milestones.
-- Asgard exploration model for lithium is being applied to identify new
project opportunities across other geological provinces worldwide,
including those in Turkey.
Dr. Kerim Sener, Managing Director, commented:
"We are very pleased to report the completion of our transaction with
Kingston. This is the second lithium project that we have
commercialised within six months. Through our 100%-owned
technology-metals subsidiary we remain committed to identifying and
commercialising other projects of merit, with a special focus on lithium,
both within and outside of Turkey."
Ariana's Strategy
Asgard has been pursuing a strategy of commodity diversification on
behalf of Ariana, with a special focus on technology-commodities,
particularly those that may be used in renewable energy applications.
Commodities of particular interest to Asgard currently include lithium
and antimony, which are found in association with certain gold
mineralisation systems in both Turkey and Western Australia, among other
gold-provinces worldwide. Asgard has developed an exploration model
specifically for lithium, which it is applying to other regions with the
aim of identifying new exploration areas for future licence acquisition.
Asgard is 100% owned by Ariana.
Summary of Agreement
Asgard sold its interests in twenty tenements in Western Australia and
the Northern Territory to Kingston Resources Limited (ASX:KSN) via the
sale of a partly-owned company, Slipstream WANT Pty. Ltd., of which
Asgard owned 4%. In consideration for this, Asgard has received payment
of A$20,000 and be issued with 6,600,000 in fully-paid ordinary shares,
half of which will be subject to a voluntary escrow period of 12 months.
Asgard will also benefit from the following performance share payments,
as follows:
-- 3,600,000 shares in Kingston upon an Inferred Mineral Resource of 5 Mt at
no less than 1% Li2O being identified on any or all of the tenements and
announced to the ASX by Kingston in accordance with the requirements of
the JORC Code; and
-- 3,600,000 shares in Kingston upon an Inferred Mineral Resource of a
further 10 Mt at no less than 1% Li2O being identified on any or all of
the tenements and announced to the ASX by Kingston in accordance with the
requirements of the JORC Code.
Kingston has completed a placement of A$6.85 million in two tranches
underwritten by Bell Potter Securities Limited, acting as Lead Manager,
to fund an aggressive exploration programme on the tenements. Tranche 1
for A$840,000 before expenses was raised without the requirement for
shareholder approval. Tranche 2 required shareholder approval and
raised A$6,010,000 before expenses. The funds raised from this
placement will be applied in part to fund the acquisition of the
tenements and their exploration.
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
Beaufort Securities Limited Tel: +44 (0) 20 7382 8300
Jon Belliss
Panmure Gordon (UK) Limited Tel: +44 (0) 20 7886 2500
Adam James / Tom Salvesen
Editors' Notes:
About Ariana Resources:
Ariana is an exploration and development company focused on epithermal
gold-silver and porphyry copper-gold deposits in Turkey. The Company is
developing a portfolio of prospective licences selected on the basis of
its in-house geological and remote-sensing database, on its own in
western Turkey and in Joint Venture with Eldorado Gold Corporation in
north-eastern Turkey. Eldorado owns 51% of this joint venture and are
fully funding all exploration work on the JV properties, while Ariana
owns 49%. The total resource inventory within this JV is 1.09 million
ounces of gold.
The Company's flagship assets are its Kiziltepe and Tavsan gold projects
which form the Red Rabbit Gold Project. Both contain a series of
prospects, within two prolific mineralised districts in the Western
Anatolian Volcanic and Extensional (WAVE) Province in western Turkey.
This Province hosts the largest operating gold mines in Turkey and
remains highly prospective for new porphyry and epithermal deposits.
These core projects, which are separated by a distance of 75km, are
being assessed as to their economic merits and now form part of a Joint
Venture with Proccea Construction Co. The Kiziltepe Sector of the Red
Rabbit Project is fully-permitted and is currently in construction. The
total resource inventory at the Red Rabbit Project and wider project
area stands at c. 525,000 ounces of gold equivalent.
Beaufort Securities Limited and Panmure Gordon (UK) Limited are joint
brokers 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
This announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Ariana Resources plc via Globenewswire
HUG#2027650
http://www.arianaresources.com/s/Home.asp
(END) Dow Jones Newswires
July 11, 2016 05:28 ET (09:28 GMT)
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