Ariana Resources PLC CONDITIONAL AGREEMENT TO SELL SATELLITE PROJECTS (1881H)
December 02 2020 - 1:00AM
UK Regulatory
TIDMAAU
RNS Number : 1881H
Ariana Resources PLC
02 December 2020
2 December 2020
AIM: AAU
CONDITIONAL AGREEMENT TO SELL SATELLITE PROJECTS
Ariana Resources plc ("Ariana" or the "Company"), the AIM-listed
exploration and development company operating in Europe, is pleased
to announce the conditional agreement for the sale of its remaining
projects in Turkey to Zenit Madencilik San. ve Tic. A.S. ("Zenit"),
ahead of the planned completion of its agreements with Özaltin
Holding A.S. ("Özaltin") and with Proccea Construction Co.
("Proccea"), concerning the proposed expanded joint venture. The
Zenit joint venture is currently owned by Ariana in a 50:50
partnership with Proccea.
Highlights:
-- Ariana's operating subsidiary in Turkey has agreed with Zenit
the sale of its three remaining Turkish projects to Zenit for US$2
million in cash, payable over 20 months.
-- The projects, which include Kizilcukur, are considered
satellites to the Kiziltepe Mine processing plant and will be
referred to as the "Satellite Projects".
-- Agreement is conditional and becomes effective on the
satisfactory completion of the JV agreements with Özaltin and
Proccea.
Dr. Kerim Sener, Managing Director, commented:
"This is an excellent outcome for the Company as we move towards
the completion of the JV agreements with Özaltin and Proccea. The
sale of these projects to Zenit represents the culmination of our
strategy to build on the resource base of the joint venture, prior
to the completion of our proposed transaction. We have long viewed
the JV as the natural home for these projects, particularly in
relation to our hub-and-spoke approach to resource development in
the context of the Kiziltepe Mine processing plant. We look forward
to updating the market in due course on the status of the proposed
expansion of our joint venture and the advancement of our
portfolio."
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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