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(Alliance News) - Ariana Resources PLC said Monday it has entered into a non-biding memorandum of understanding with an unnamed "major" Turkish construction and engineering company.
Ariana Resources shares closed up 32% in London at 2.77 pence each on Monday.
The exploration and development company, operating in Turkey, said the deal proposes a series of interlinked transactions which will enable the company to partially monetize the development of the Kiziltepe Mine and its earlier-stage Salinbas gold project.
The company said the proposed memorandum contemplates the disposal of 17% of the Salinbas project for USD5.0 million. It also proposes 53% sale of Zenit, the company's joined venture with Turkish Proccea Construction Co, for USD50 million.
Furthermore, the transaction proposes USD8 million injection of equity in the Salinbas project by the proposed partner via and earn-in arrangement and organise the bank finance to enable this project to be brought into production.
The company said it expected to get shareholders approval and enter into the binding agreements no later that the end of February.
Kerim Sener, managing director, said: "We look forward to advancing the proposed MoU in to a joint venture capable of unlocking the full value of our assets in Turkey, which will also target the development of a future pipeline of high-value production projects."
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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