PUBLICATION OF CIRCULAR AND GENERAL UPDATE

RNS Number : 4460I

Ariana Resources PLC

14 December 2020

 

 

14 December 2020

AIM: AAU

PUBLICATION OF CIRCULAR AND GENERAL UPDATE

Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed exploration and development company operating in Europe, is pleased to announce the publication of its circular to shareholders (the "Circular") concerning the agreements (the "Transaction") reached with Özaltin Insaat, Ticaret and Sanayi A.S. ("Özaltin") and with Proccea Construction Co. ("Proccea"). 

Highlights:

· Circular published on the Ariana Resources website, under Circulars (accessible via: https://bit.ly/2LqTaVM ) and which has been posted to shareholders today.

· General Meeting to approve the Transaction to be convened on 30 December 2020.

· Pre-payments under the terms of the agreements totalling US$2.75 million have been made to Ariana and Proccea, of which Ariana has received US$1.5 million.

· New drilling campaign of approximately 5,000m at Kiziltepe to commence by early 2021, to continue testing vein extensions at Arzu South, Arzu North, Banu and Derya.

Dr. Kerim Sener, Managing Director of Ariana Resources, commented:

"We look forward to completing the Transaction, which is subject to shareholder approval and also to the receipt of regulatory approvals in Turkey, and to continue the exploration and development of the New JV as proposed in our announcement of 7 December 2020.  We are now accelerating plans to further drill-test vein extensions across the Kiziltepe mine area, in order to further expand the resources and reserves.  In addition, plans to complete further resource drilling at the Tavsan Project are significantly advanced, the results of which will be integrated into the feasibility study.  We are expecting to commence the latter drilling programme from early Q2 2021 once the permitted areas are accessible following the winter." 

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]
John Prior / Hugh Rich / Atholl Tweedie
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 c. 2.1 million ounces of gold and other metals (as at July 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. 1.5 million ounces of gold.  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 4 million ounce 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") and has to date earned into an entitlement to 12%.  Venus is focused on the exploration and development of copper-gold assets in Cyprus.

Panmure Gordon (UK) Limited is broker to the Company and Beaumont Cornish Limited is the Company's Nominated Adviser and Broker.

For further information on Ariana you are invited to visit the Company's website at www.arianaresources.com .

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