Rns7 Dec 2020 07:12
Deal done. Result.
JOINT VENTURE CONDITIONAL AGREEMENTS COMPLETED
Ariana Resources plc ("Ariana" or the "Company"), the AIM-listed exploration and development company operating in Europe, is pleased to announce the completion of conditional agreements on its joint venture with Özaltin Holding A.S. ("Joint Venture" or "JV"), via its subsidiary, Özaltin Insaat, Ticaret and Sanayi A.S. (collectively "Özaltin") and with Proccea Construction Co. ("Proccea") (collectively "the Parties"). Özaltin will be acquiring 53% of both Pontid Madencilik Sanayi ve Ticaret A.S. ("Pontid"), the owner of the Salinbas Project ("Salinbas") and the existing Zenit Madencilik San. ve Tic. A.S. ("Zenit") joint venture which is currently owned by Ariana in a 50:50 partnership with Proccea.
The Joint Venture with Özaltin and Proccea involves the partial disposal of the interests of the Company in Zenit and Pontid in exchange for US$35.75 million in cash ("the Transaction"). On completion, Ariana will retain a 23.5% interest in the Joint Venture, as will Proccea. The Parties have also agreed to the sale of Ariana's remaining projects, under its subsidiary Galata, to Zenit for an additional US$2 million in cash (as announced on 2 December 2020).
Highlights:
· JV to continue the development of the 0.6Moz Red Rabbit Project and to advance the 1.5Moz Salinbas Project.
· JV to be owned 53% Özaltin, 23.5% Ariana, 23.5% Proccea, with Proccea as Manager.
· Cash payment to Ariana of US$37.75 million, before costs and taxation, inclusive of the sale of Ariana's remaining projects to Zenit.
· US$8 million to be committed by Özaltin to fund a Feasibility Study, EIA and additional permitting on Salinbas.
· Ariana to continue exploration across the JV projects with the aim of defining additional resources and in the pursuit of new project opportunities elsewhere.
· The Transaction remains conditional inter alia on Ariana shareholder approval, following the publication of a Circular to Shareholders and the satisfactory completion of a General Meeting of the Company. The Transaction is also conditional on the necessary regulatory approvals in Turkey.