Ariana Resources plc : Red Rabbit Joint Venture...
2 January 2013
AIM: AAU
RED RABBIT JOINT VENTURE PARTNER AND DIRECTORS' PURCHASES UNDER SEDA SHARE ISSUE
Ariana Resources plc ("Ariana" or "the Company"), the gold exploration and development company focused on Turkey, is pleased to announce that further to the financing update announcement on 31 December 2012, a portion of the shares issued under the SEDA Advance have been purchased by Proccea Construction Co. ("Proccea"), Ariana's JV partner on its Red Rabbit Gold Project, and by Directors of the Company as follows:
Proccea purchased 9,090,910 shares at 1.1 pence per share, representing their total holding, and 2.45% of the issued share capital;
Michael Spriggs, Chairman, purchased 454,546 shares at 1.1 pence per share, and now holds a total of 1,237,618 shares or 0.33% of the issued share capital;
Dr Kerim Sener, Managing Director, purchased 909,091 shares at 1.1 pence per share, and now holds a total of 6,349,901 shares or 1.71% of the issued share capital;
Michael de Villiers, Director, purchased 909,091 shares at 1.1 pence per share, and now holds a total of 3,508,233 shares or 0.95% of the issued share capital; and
The wife of William Payne, Director, purchased 454,546 shares at 1.1 pence per share, and William Payne, together with his wife and three children under the age of eighteen, now holds a total of 1,157,178 shares or 0.31% of the issued share capital.
Dr. Kerim Sener, Managing Director, commented:
"This financing solution provides the Company with sufficient capital to complete its technical studies on the Kiziltepe Sector of the Red Rabbit Gold Project and to initiate formal mine permitting procedures. With this crucial phase of pre-production development underway, we can secure the necessary finance to commence construction in the latter half of 2013, enabling the Red Rabbit Gold Project to move into production in the near term.
"Together with Proccea, Ariana is working to secure the estimated US$23 million project capital required by Zenit Madencilik San. ve Tic. A.S., the Red Rabbit JV company, required to build the mine. Early discussions with potential project financiers have already generated encouragingly positive feedback, underpinning the highly attractive economic fundamentals achievable at Red Rabbit's initial sector of focus, including a Net Present Value of up to US$49.8 million and Internal Rate of Return of 47.8%, with payback secured in 2.1 years.
"We are also very pleased that our project partners, Proccea, are now shareholders in the Company holding 2.45%. This is in recognition of the strength and solidarity of our partnership, and the proximity of the project to production."
Contacts:
| Ariana Resources plc | Tel: +44 (0) 20 7407 3616 |
| Michael Spriggs, Chairman | |
| Kerim Sener, Managing Director | |
| Beaumont Cornish Limited | Tel: +44 (0) 20 7628 3396 |
| Roland Cornish / Felicity Geidt | |
| S.P. Angel Corporate Finance LLP | Tel: +44 (0) 20 3463 2260 |
| Ewan Leggat / Laura Littley | |
| St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
| Susie Geliher / Hugo de Salis | |
About Ariana Resources:
Ariana is an exploration and development company focused on epithermal gold-silver and porphyry copper-gold deposits in Turkey. The Company is developing a portfolio of prospective licences selected on the basis of its in-house geological and remote-sensing database, on its own in western Turkey and in Joint Venture with Eldorado Gold Corporation in north-eastern Turkey. Eldorado owns 51% of this joint venture and is fully funding all exploration work on the JV properties, while Ariana owns 49% and is the operator.
The Company's flagship assets are its Sindirgi and Tavsan gold projects which form the Red Rabbit Gold Project. Both contain a series of prospects, within two prolific mineralised districts in the Western Anatolian Volcanic and Extensional (WAVE) Province in western Turkey. This Province hosts the largest operating gold mines in Turkey and remains highly prospective for new porphyry and epithermal deposits. These core projects, which are separated by a distance of 75km, are presently being assessed as to their economic merits and now form part of a Joint Venture with Proccea Construction Co. The total resource inventory of the Company stands at 448,000 ounces of gold equivalent.
Ariana also has a strategic investment in Tigris Resources Limited (www.tigrisresources.com), a private Jersey-based exploration company, which is focused on the exploration of copper and gold deposits in southeastern Turkey. Ariana retains 12.3% of Tigris Resources Limited.
S.P. Angel Corporate Finance LLP are brokers to the Company and Beaumont Cornish Limited is the Company's Nominated Adviser.
For further information on Ariana you are invited to visit the Company's website at www.arianaresources.com.
Ends
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Ariana Resources plc via Thomson Reuters ONE
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