(Alliance News) - Ariana Resources PLC on Wednesday announced that its 75% held subsidiary Western Tethyan Resources Ltd has acquired an option on the Slivova gold project in Kosovo.
Ariana is a London-based mineral exploration and development company.
Western Tethyan completed the exclusive option to earn-in on the project with Avrupa Minerals Ltd.
According to Ariana, Slivova has up to 14.68 grammes of silver per tonne and 4.8 grammes of gold per tonne.
Under the terms of the agreement, Western Tethyan has the right to acquire, in stages, up to 85% of the project.
Western Tethyan also has the right to withdraw from the project before the end of a six-month due-diligence period but must fund a minimum of EUR25,000 of exploration work during the first three months of due-diligence.
The final agreement is expected to be completed once the due-diligence is finished.
The Slivova project covers 32 kilometres squared and is valid for seven years of exploration. A significant part of the project remains to be explored, although there are "indications" of further mineralisation in the immediate vicinity.
Managing Director Kerim Sener commented: "This is an excellent development for the growing pipeline of potential production projects within the Ariana stable. These developments are complementary to the focus Western Tethyan is applying to our Strategic Alliance with Newmont Corporation, and further establishes the company as a serious explorer and developer of high-quality mining projects in south-eastern Europe."
Shares in Ariana were trading 1.6% higher at 2.95 pence each on Wednesday afternoon.
By Chris Dorrell; chrisdorrell@alliancenews.com
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