EXTENSION AGREEMENT

RNS Number : 5279L

Ariana Resources PLC

30 April 2020

 

30 April 2020

AIM: AAU

EXTENSION AGREEMENT

Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed exploration and development company operating in Europe, is pleased to announce a further extension to the project review period under the Memorandum of Understanding ("MoU") as most recently updated on 1 April  2020.

Highlights:

· Final diligence report due to be submitted by the technical consultants to the Proposed Partner.

· The Proposed Partner, Proccea and Ariana ("the Parties") have completed a further extension to the MoU, to 30 June 2020.

· Draft definitive legal agreements remain under review by the Parties.

Dr. Kerim Sener, Managing Director, commented: 

"Due to the limitations resulting from the impact of COVID-19, we have decided jointly to extend the project review period until the 30 June 2020.  This will enable the Parties to evaluate the proposed new Joint Venture ("JV") and the draft legal agreements detailing the specific terms of the JV.  This provides additional time to enable an even more thorough review by the Parties and coincides with significant new project developments, including the revised Resource Estimate for Kiziltepe, announced last week, and revisions to our resource for Tavsan which remains work in progress.  In addition, at Tavsan we are in the process of finalising the development schedule for what is expected to be our second mine in Turkey."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Contacts:

Ariana Resources plc	Tel: [phone]
Michael de Villiers, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited	Tel: [phone]
Roland Cornish / Felicity Geidt
Panmure Gordon (UK) Limited	Tel: [phone]
Atholl Tweedie / James Stearns
Yellow Jersey PR Limited	Tel: [phone]
Dom Barretto / Joe Burgess / Henry Wilkinson	[e-mail]

Editors' Note:

About Ariana Resources:

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 1.5 million ounces of gold and other metals (as at April 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 million ounces of gold equivalent.  The project comprises three notable licence areas: Salinbas, Ardala and Hizarliyayla, all of which are located within a multi-million ounce Artvin Goldfield.  The "Hot Gold Corridor" contains several significant gold-copper projects including the 4Moz 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").  Venus is focused on the exploration and development of copper-gold assets in Cyprus.

Panmure Gordon (UK) Limited are 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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