Joint Venture to Develop Sindirgi and Tavsan

27th October 2009 AIM / PLUS Markets: AAU JOINT VENTURE TO DEVELOP SINDIRGI AND TAVSAN Ariana Resources plc ("Ariana" or "the Company"), the gold exploration and development company focused on Turkey is pleased to announce a Memorandum of Understanding ("MoU") on a joint venture ("JV") agreement designed to advance the Company significantly towards its goal of becoming a long term gold producer. Highlights * Good-will payment of US$0.5 million on signature of MoU * 50-50 JV to develop the Sindirgi and Tavsan projects * US$8 million funding to be committed to feasibility and plant construction Details of MoU Shareholders will recall that in the Company's half-yearly report released on 29 September 2009, Dr Kerim Sener, Managing Director, explained that the Company was examining the feasibility of combining its two principal projects, Sindirgi and Tavsan, into a single conceptual entity - the Red Rabbit Project - and that it was considering the development of this project as a joint venture with a Turkish engineering firm. The Company now announces that, through its operating subsidiary Galata Madencilik San. ve Tic. Ltd., it has entered into a MoU with Proccea Construction Co. ("Proccea"), an integrated Turkish turn-key construction firm involved in a range of business sectors from gold processing plants to major hotels. The MoU provides for the negotiation of formal joint venture documentation which is expected to lead to the establishment of a long term gold mining operation in Turkey. The JV agreement envisaged in the MoU is a 50-50 joint venture between Ariana and Proccea to be formalised by the establishment of a Turkish joint stock company which will hold and develop the assets. Proccea will then be committed to fully-fund an Environmental Impact Assessment and Feasibility Study on Red Rabbit and to commence construction of the gold processing plant. By funding US$8 million, Proccea will earn-in to its 50% share in the joint stock company. It is intended that the additional capital requirements for plant start-up may be met by a credit facility to be arranged by the joint-stock company. On the successful commissioning of the plant, profit share within the joint stock company will be 51% Ariana and 49% Proccea. Under the terms of the MoU, Ariana will be paid within seven working days US$0.5 million in cash which will be used at the Company's discretion in exchange of a letter of guarantee valid for a term of one year. However, should the parties to the MoU fail to reach agreement on the signing of the formal joint venture documentation, the Company will be obliged to return this cash sum in full with the return of the letter of guarantee. The implementation of the joint venture agreement is contingent upon the outcome of approximately 90 days' due diligence, with a long stop date for completion of the formal joint venture documentation of 180 days. Dr. Kerim Sener, Managing Director, commented: "The completion of this MoU with Proccea marks a major step forward for Ariana. Our earlier trial mining at Kiziltepe demonstrated our ability to produce gold in Turkey, providing the technical and economic reassurance necessary to develop the Sindirgi and Tavsan projects as a successful integrated entity - the Red Rabbit project. We have identified a strong JV partner for funding the project through the feasibility and construction stages, with a track record of successful gold project development in Turkey. Their experience in establishing many successful gold plants worldwide reflects their high level engineering and operating skills and we are proud to enter this partnership with them." Mr. Deniz Aybars, Managing Director, Proccea, commented: "We are very pleased to enter this partnership with Galata Madencilik (the subsidiary of Ariana Resources plc in Turkey) and excited about developing a Turkish gold mining venture. We look forward to completing the JV agreement in the coming months and the start of fruitful long term relations." About Proccea Proccea Construction Co. (www.proccea.com) is an integrated construction firm specialising in turn-key solutions for a variety of business sectors ranging from the development of gold processing plants to designing and building major hotels. The mining service is provided by a business division of Proccea named CH Engineering & Consultancy ("CH"). CH provides a range of services to the mining industry, including the design of mining equipment and processing plants, manufacturing installation, commissioning, start-up and staff training for gold and silver extraction in the mining industry (www.chconsultants.com). CH provides the installation and technical services for such gold mining processes as heap leach, CIL and CIP design and operations. CH has wide experience of designing and commissioning gold and silver processing plants. In Turkey this has included the Kisladag gold mine (Eldorado Gold), Copler gold mine (Anatolia Minerals), Mastra gold mine (Koza Gold) and the Gümüsköy silver mine (Eti Gümüs). Internationally, CH processing plant commissions have included the Zarcan gold mine in Iran, the Knelson gold mine in Kazakhstan, the Amesmessa gold mine in Algeria, the Kitila gold mine in Finland, the Minera Triton gold mine in Argentina and the Maaden gold mine in Saudi Arabia. CH has the technical support of the internationally renowned Summit Valley Equipment and Engineering firm based in Utah, U.S.A. Contacts: Ariana Resources plc Michael Spriggs, Chairman Tel: 020 7407 3616 Kerim Sener, Managing Director Beaumont Cornish Limited Tel: 020 7628 3396 Roland Cornish Alexander David Securities Limited Tel: 020 7448 9820 Nick Bealer / David Scott Loeb Aron & Company Ltd Tel: 020 7628 1128 Peter Freeman / Frank Lucas 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 exploring 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 European Goldfields Limited in north-eastern Turkey. The Company's flagship assets are its Sindirgi and Tavsan gold projects. Both projects 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. The total resource inventory of the Company stands at 401,000 ounces of gold equivalent. Loeb Aron & Company Ltd. and Alexander David Securities Limited are joint 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 ---END OF MESSAGE--- This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
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