(Alliance News) - Ariana Resources PLC said on Friday an unnamed potential partner in Turkey has seen similar drilling results to that carried out by Ariana previously.
The proposed partner at the Salinbas gold project carried out its own drilling on four holes previously drilled by Ariana. Assay results, Ariana said, confirmed "good" correlations between the results achieved by Ariana and those seen by the proposed partner.
Ariana, its joint venture partner Proccea Construction Co, and the potential partner have agreed to extend the exclusivity deadline to allow the proposed partner to finish due diligence to March 31.
Kerim Sener, Ariana's Managing Director, said: "We are pleased to confirm that the due diligence confirmatory drilling programme at Salinbas has been concluded and can now be factored into the independent review.
"The efforts of the independent due diligence team are currently focusing on the Kiziltepe mining operations and, in order to provide sufficient time for the completion of this work, the proposed joint venture parties have extended the exclusivity period to the end of March. Meanwhile, the necessary definitive legal documentation is being prepared for review by the proposed joint venture parties from the second half of February."
"We look forward to working closely with the proposed joint venture parties in order to conclude the proposed agreement and advancing our project development plans for Salinbas in particular," Sener added.
In November, Ariana said the potential partner is a "major" Turkish construction and engineering firm.
Were the proposed partner to decide to proceed, it would take a 17% stake in Salinbas for USD5.0 million. A 53% stake in Zenit, Ariana's joint venture with Proccea, would also be sold for USD50 million.
Furthermore, the joint venture would also see a USD8 million injection of equity into Salinbas by the proposed partner via an earn-in arrangement. They would also organise bank finance to enable the project to be brought into production.
Ariana shares were 1.8% lower on Friday morning in London at a price of 3.02 pence each.
By George Collard; georgecollard@alliancenews.com
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