AAU Ariana Resources Plc

 
TIDMAAU 
 
   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: +44 (0) 20 7886 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 
 
   This announcement is distributed by NASDAQ OMX Corporate Solutions on 
behalf of NASDAQ OMX Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Ariana Resources plc via Globenewswire 
 
   HUG#2027650 
 
 
  http://www.arianaresources.com/s/Home.asp 
 

(END) Dow Jones Newswires

July 11, 2016 05:28 ET (09:28 GMT)

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