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19 Jan 2021 07:00
19 January 2021
AIM: AAU
COMPETITION AUTHORITY APPROVAL
Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed exploration and development company operating in Europe, is pleased to announce the receipt of formal approval from the Competition Authority in Turkey for the completion of its joint venture ("Joint Venture" or "JV") agreements with Özaltin Holding A.S. ("Özaltin") and Proccea Construction Co. ("Proccea"), as announced on 7 December 2020 and ratified by shareholders on 30 December 2020.
Highlights:
· Approval received from the Competition Authority, representing the final regulatory condition precedent for the conclusion of the expanded Joint Venture.
· Expanded Joint Venture with Özaltin and Proccea involves the partial disposal of the Company's interests in Turkey in exchange for up to US$37.75 million in cash before costs and taxation ("the Transaction").
· Ariana and Proccea to retain a 23.5% interest each in the expanded Joint Venture.
Dr. Kerim Sener, Managing Director, commented:
"We are very pleased to have received this approval from the Competition Authority and welcome their support of this Transaction. This approval marks the last significant condition precedent for the conclusion of the expanded Joint Venture. We are now working with Özaltin and Proccea to finalise the Transaction, so that we can commence activities across our projects within the framework of our new JV.
"We are already well underway with a new drilling programme at Kiziltepe, testing extensions to known vein systems along strike and at depth. This programme is being undertaken with the aim of increasing the project's resources and reserves, in parallel with the expansion plans for the processing facilities at Kiziltepe.
"These are exciting times for the Company, providing us with a large degree of optionality across our portfolio, which we look forward to further de-risking and crystallising value from in the future."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Contacts:
Ariana Resources plc | Tel: +44 (0) 20 7407 3616 |
Michael de Villiers, Chairman | |
Kerim Sener, Managing Director | |
Beaumont Cornish Limited | Tel: +44 (0) 20 7628 3396 |
Roland Cornish / Felicity Geidt | |
Panmure Gordon (UK) Limited | Tel: +44 (0) 20 7886 2500 |
John Prior / Hugh Rich / Atholl Tweedie | |
Yellow Jersey PR Limited | Tel: +44 (0) 7951 402 336 |
Dom Barretto / Joe Burgess / Henry Wilkinson | arianaresources@yellowjerseypr.com |
Editors' Note:
About Ariana Resources (details as current and before completion of the JV):
Ariana is an AIM-listed mineral exploration and development company operating in Europe. It has interests in gold production in Turkey and copper-gold assets in Cyprus. The Company is developing a portfolio of prospective licences in Turkey, which contain a depleted total of c. 2.1 million ounces of gold and other metals (as at July 2020).
The Red Rabbit Project is comprised of the Company's flagship assets, the Kiziltepe and Tavsan gold projects, and is part of a 50:50 Joint Venture with Proccea Construction Co. Both assets are located in western Turkey, which hosts some of the largest operating gold mines in the country and remains highly prospective for new porphyry and epithermal deposits. The Kiziltepe Sector of the Red Rabbit Project is fully permitted and is currently in production. The total depleted resource inventory at the Project and its wider area is c. 500,000 ounces of gold equivalent (as at April 2020). At Kiziltepe a Net Smelter Return ("NSR") royalty of up to 2.5% on production is payable to Franco-Nevada Corporation. At Tavsan an NSR royalty of up to 2% on future production is payable to Sandstorm Gold.
The 100% owned Salinbas Gold Project is located in north-eastern Turkey and has a total resource inventory of c. 1.5 million ounces of gold. The project comprises three notable licence areas: Salinbas, Ardala and Hizarliyayla, all of which are located within a multi-million ounce Artvin Goldfield. The "Hot Gold Corridor" contains several significant gold-copper projects including the 4 million ounce Hot Maden project, which lies 16km to the south of Salinbas and 7km south of Hizarliyayla. A NSR royalty of up to 2% on future production is payable to Eldorado Gold Corporation on the Salinbas Gold Project.
Ariana is also earning-in to 50% of UK-registered Venus Minerals Ltd ("Venus") and has to date earned into an entitlement to 12%. Venus is focused on the exploration and development of copper-gold assets in Cyprus.
Panmure Gordon (UK) Limited is broker to the Company and Beaumont Cornish Limited is the Company's Nominated Adviser and Broker.
For further information on Ariana you are invited to visit the Company's website at www.arianaresources.com.
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