Ariana Resources PLC Strategic Investment Status Granted To Kiziltepe Gold Mine
June 08 2015 - 3:00AM
UK Regulatory
TIDMAAU
8 June 2015
AIM: AAU
STRATEGIC INVESTMENT STATUS GRANTED TO KIZILTEPE GOLD MINE
Ariana Resources plc ("Ariana" or "the Company"), the Anglo-Turkish gold
exploration and development company is delighted to announce that its
Kiziltepe Gold-Silver Mine ("Kiziltepe"), has been granted Strategic
Investment status by the Turkish Government. Kiziltepe is part of the
Red Rabbit Joint Venture in western Turkey with Proccea Construction Co.
Highlights:
-- Strategic Investment status provides enhanced investment incentives and
demonstrates continued support for the mine's development by the Turkish
Government.
-- Additional 50% reduction (90% total reduction) in corporation tax and
exemptions from customs duties and VAT on components and equipment to be
imported.
-- Kiziltepe financial models to be revised to include latest incentives.
-- Kiziltepe Mine fully funded and permitted ahead of construction start-up.
Michael de Villiers, Chairman, commented:
"We are delighted to have received Strategic Investment status following
the recent approval of our forestry permits. These enhanced incentives
demonstrate support for our mine development by the Turkish Government,
ensuring improvements to the economics of Kiziltepe while encouraging
new exploration. This is a win-win for the Company and for Turkey as
new resources are discovered and mined."
Investment Incentives
During 2014, the Joint Venture company, Zenit Madencilik San. ve Tic
A.S. ("Zenit"), applied to the General Directorate of Incentives and
Foreign Investment at the Turkish Ministry of the Economy for the
inclusion of the project as a Strategic Investment. In addition to
existing incentives secured by the company (which includes an 80%
reduction in corporation tax), classification as a Strategic Investment
entails a total reduction of 90% in corporation tax up to a tax limit of
50% of the capital investment. The Company has now been given the
status of a Strategic Investment and will be able to take advantage of
strategic investment incentives made available by the Turkish
Government. The Company will be revising its financial models to take
account of these incentives for the Kiziltepe Mine accordingly.
The incentives secured include:
-- Exemption from customs duty domestic and foreign machinery and equipment
(100% exemption).
-- 90% reduction in corporation tax up to a tax limit of 50% of the capital
investment. This equates to corporation tax being paid at a rate of 2%
in the early years of the operation, rather than the standard 20% rate.
-- Social insurance contributions for all mine employees will be paid by the
Turkish Government for 7 years.
-- Interest repayment support on any Turkish Lira or foreign currency loan
secured by the company.
-- VAT exemption domestic and foreign machinery and equipment (100%
exemption).
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
Saif Janjua
Loeb Aron & Company Ltd. Tel: +44 (0) 20 7628 1128
John Beresford-Peirse / Dr. Frank Lucas
St Brides Partners Ltd Tel: +44 (0) 20 7236 1177
Lottie Brocklehurst / Felicity Winkles
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
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
presently being assessed as to their economic merits and now form part
of a Joint Venture with Proccea Construction Co. The total resource
inventory at the Red Rabbit Project stands at 475,000 ounces of gold
equivalent.
Beaufort Securities Limited and Loeb Aron & Company Ltd. 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#1926803
http://www.arianaresources.com/s/Home.asp
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