Joint Venture Partner Initiates Sole Funding of...

Joint Venture Partner Initiates Sole Funding of Red Rabbit Gold Project, Turkey

7 March 2013
AIM: AAU

JV PARTNER INITIATES SOLE FUNDING OF RED RABBIT GOLD PROJECT, TURKEY

Ariana Resources plc ("Ariana" or "the Company"), the gold exploration and development company focused on Turkey, is pleased to announce that its Joint Venture ("JV") partner, Proccea Construction Co. ("Proccea"), has committed to sole funding of the Red Rabbit Gold Project ("Red Rabbit" or "the Project") in Western Turkey in advance of receiving Environmental Impact Assessment ("EIA") positive certification as the Company progresses towards targeted production in 2014.

Highlights:

  • Ariana's Joint Venture partner, Proccea, has commenced sole funding of the Red Rabbit Gold Project following a year of joint-funding in 2012. 

  • Proccea to contribute a further US$6.6 million of funding to earn-in to 50% of the Red Rabbit Joint Venture prior to production commencing in 2014. 

  • Joint Venture targeting construction start-up during Q4 2013, pending EIA positive certification. 

  • Proccea's shareholding in the Company now increased to 2.75%. 

Dr. Kerim Sener, Managing Director, commented:

"During 2012 Ariana completed joint-funding on the Red Rabbit Gold Project on a 50-50 basis with our project partners Proccea.  This joint-funding period was necessary as we worked through various permitting matters, including forestry permissions, during the year.  Now that these permitting matters are resolved, and the JV company has submitted its project summary document to the Ministry of Environment and Urban Planning, Proccea has determined to continue sole funding of the project.

"These developments collectively represent a step-change in our advancement of the Red Rabbit Gold Project and to have the support of our JV partners at this important time is highly encouraging.  This support is also evident as a result of Proccea increasing its shareholding in the Company - its holding now equals 2.75%."  

Contacts:

Ariana Resources plcTel: +44 (0) 20 7407 3616
Michael Spriggs, Chairman
Kerim Sener, Managing Director
Beaumont Cornish LimitedTel: +44 (0) 20 7628 3396
Roland Cornish / Felicity Geidt
Beaufort International Associates LimitedTel: +44 (0) 20 7382 8387
Chris Rourke / Guy Wheatley
St Brides Media & Finance LtdTel: +44 (0) 20 7236 1177
Susie Geliher / Lottie Brocklehurst

Editors' note:

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 11.5% of Tigris Resources Limited.  

Beaufort International Associates Limited is broker 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



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Source: Ariana Resources plc via Thomson Reuters ONE
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