LONDON: Ariana Resources plc ha announced the conditional agreement for the sale of its remaining projects in Turkey to Zenit Madencilik San. ve Tic. A.S., ahead of the planned completion of its agreements with Özaltin Holding A.S. and with Proccea Construction Co., concerning the proposed expanded joint venture.

The Zenit joint venture is currently owned by Ariana in a 50:50 partnership with Proccea. 

Highlights:

• Ariana’s operating subsidiary in Turkey has agreed with Zenit the sale of its three remaining Turkish projects to Zenit for US$2 million in cash, payable over 20 months.
• The projects, which include Kizilcukur, are considered satellites to the Kiziltepe Mine processing plant and will be referred to as the “Satellite Projects”.
• Agreement is conditional and becomes effective on the satisfactory completion of the JV agreements with Özaltin and Proccea.

Dr. Kerim Sener, Managing Director, commented: “This is an excellent outcome for the Company as we move towards the completion of the JV agreements with Özaltin and Proccea. The sale of these projects to Zenit represents the culmination of our strategy to build on the resource base of the joint venture, prior to the completion of our proposed transaction. We have long viewed the JV as the natural home for these projects, particularly in relation to our hub-and-spoke approach to resource development in the context of the Kiziltepe Mine processing plant. We look forward to updating the market in due course on the status of the proposed expansion of our joint venture and the advancement of our portfolio.”

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 the 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 c. 12%.  Venus is focused on the exploration and development of copper-gold assets in Cyprus, which includes the Magellan Project on which a resource of 8.5Mt @ 0.63% Cu (+ Au, Ag, Zn) has been defined.

Panmure Gordon (UK) Limited is broker to the Company and Beaumont Cornish Limited is the Company’s Nominated Adviser and Broker. www.arianaresources.com