(Alliance News) - Ariana Resources PLC on Wednesday said that its partially-owned subsidiary, Western Tethyan Resources Ltd, has executed an earn-in agreement for the Slivova Gold Project in Kosovo.
Ariana Resources is a mineral exploration and development company with gold mining interests in Europe. It owns 75% of Western Tethyan.
Avrupa Minerals Ltd, which owns the Kosovo licence, signed heads of terms with Western Tethyan late last year. The earn-in agreement was subject to a period of due diligence, was completed in March, and has now been fully executed.
Western Tethyan has the right to earn-in up to 75% of the project within the next three years by committing up to EUR1.8 million in funding.
It has the option to increase this to 85% on the delivery of a feasibility study, environmental impact assessment, and a completed mining licence application.
If Avrupa does not fund its share of the associated costs of any mine construction, this interest could increase to 100%.
"The completion of this agreement formalises a process we had already embarked upon in March following the successful completion of the project due diligence. We are already nearing completion of a revised Mineral Resource Estimate for Slivova, and we look forward to announcing this work in due course," said Ariana Managing Director Kerim Sener.
Ariana Resources shares were trading 3.6% higher at 2.85 pence each in London on Wednesday afternoon.
By Holly Beveridge, Alliance News reporter
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Ariana (AAU)