Ariana Resources plc : completion of second lit...

11 July 2016
AIM: AAU

COMPLETION OF SECOND LITHIUM TRANSACTION

Ariana Resources plc ("Ariana" or "the Company"), through its 100%-owned Australian subsidiary, Asgard Metals Pty. Ltd. ("Asgard"), has completed the sale of its interests in a package of tenements in the Northern Territory and Western Australia to Kingston Resources Limited (ASX:KSN) ("Kingston"), as announced on 17 May 2016.

Highlights:

• Completion of the transaction has occurred following the satisfaction of all conditions, including grant of the core tenement, Kingston shareholder approval for the transaction and a A$6.85 million capital raising by Kingston.

• Completion of the initial cash payment to Asgard of A$20,000 and 6,600,000 fully paid ordinary shares in Kingston (currently valued at A$132,000); Ariana now owns approximately 1% of Kingston.

• Asgard to benefit from up to 7,200,000 performance shares which are to be issued on the achievement of certain project milestones. 

• Asgard exploration model for lithium is being applied to identify new project opportunities across other geological provinces worldwide, including those in Turkey.

Dr. Kerim Sener, Managing Director, commented: 

"We are very pleased to report the completion of our transaction with Kingston.  This is the second lithium project that we have commercialised within six months.  Through our 100%-owned technology-metals subsidiary we remain committed to identifying and commercialising other projects of merit, with a special focus on lithium, both within and outside of Turkey." 

Ariana's Strategy

Asgard has been pursuing a strategy of commodity diversification on behalf of Ariana, with a special focus on technology-commodities, particularly those that may be used in renewable energy applications.  Commodities of particular interest to Asgard currently include lithium and antimony, which are found in association with certain gold mineralisation systems in both Turkey and Western Australia, among other gold-provinces worldwide.  Asgard has developed an exploration model specifically for lithium, which it is applying to other regions with the aim of identifying new exploration areas for future licence acquisition.  Asgard is 100% owned by Ariana.

Summary of Agreement

Asgard sold its interests in twenty tenements in Western Australia and the Northern Territory to Kingston Resources Limited (ASX:KSN) via the sale of a partly-owned company, Slipstream WANT Pty. Ltd., of which Asgard owned 4%.  In consideration for this, Asgard has received payment of A$20,000 and be issued with 6,600,000 in fully-paid ordinary shares, half of which will be subject to a voluntary escrow period of 12 months.  Asgard will also benefit from the following performance share payments, as follows:

• 3,600,000 shares in Kingston upon an Inferred Mineral Resource of 5 Mt at no less than 1% Li₂O being identified on any or all of the tenements and announced to the ASX by Kingston in accordance with the requirements of the JORC Code; and

• 3,600,000 shares in Kingston upon an Inferred Mineral Resource of a further 10 Mt at no less than 1% Li₂O being identified on any or all of the tenements and announced to the ASX by Kingston in accordance with the requirements of the JORC Code.

Kingston has completed a placement of A$6.85 million in two tranches underwritten by Bell Potter Securities Limited, acting as Lead Manager, to fund an aggressive exploration programme on the tenements.  Tranche 1 for A$840,000 before expenses was raised without the requirement for shareholder approval.  Tranche 2 required shareholder approval and raised A$6,010,000 before expenses.  The funds raised from this placement will be applied in part to fund the acquisition of the tenements and their exploration.

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
Beaufort Securities Limited	Tel: +44 (0) 20 7382 8300
Jon Belliss
Panmure Gordon (UK) Limited	Tel: [phone] 2500
Adam James / Tom Salvesen

Editors' Notes:

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 are fully funding all exploration work on the JV properties, while Ariana owns 49%.  The total resource inventory within this JV is 1.09 million ounces of gold.

The Company's flagship assets are its Kiziltepe 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 being assessed as to their economic merits and now form part of a Joint Venture with Proccea Construction Co.  The Kiziltepe Sector of the Red Rabbit Project is fully-permitted and is currently in construction.  The total resource inventory at the Red Rabbit Project and wider project area stands at c. 525,000 ounces of gold equivalent. 

Beaufort Securities Limited and Panmure Gordon (UK) 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

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Source: Ariana Resources plc via Globenewswire

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