(Alliance News) - Ariana Resources PLC on Thursday said it has agreed to buy all of Rockover Holdings Ltd, the owner of the Dowke gold project in Zimbabwe.
Ariana currently has a 2.1% stake in Rockover via its wholly owned Asgard Metals Pty Ltd subsidiary. Under the proposed all-share merger, Ariana will issue 687.8 million new shares to the owners of Rockover. As a result, Ariana shareholders will own 62.5% of the enlarged company and Rockover's the remaining 37.5%.
Ariana shares were down 12% at 2.50 pence on Thursday afternoon in London, giving it a GBP28.6 million market capitalisation.
As part of the deal, Arian said it will seek a dual-listing on the Australian Securities Exchange in Sydney, while retaining its listing on AIM in London. The merger is expected to be completed in June.
Rockover owns 100% of the Dokwe gold project near Bulawayo in south west Zimbabwe. The deposit has indicated and inferred resources of 1.3 million ounces of gold. Within this are 800,000 ounces of proven and probable reserves. The planned mine has a net present value of USD72 million with a life of 13 years.
"We are thrilled to announce a significant milestone in Ariana's history through securing this opportunity to acquire a major new gold development project and embarking on a new chapter by expanding beyond our well-established Turkish operations," said Managing Director Kerim Sener.
By Tom Waite, Alliance News editor
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Ariana (AAU)