Ariana Resources PLC COMMITMENT BY ÖZALTIN HOLDING A.S. (6102R)
July 01 2020 - 2:00AM
UK Regulatory
TIDMAAU
RNS Number : 6102R
Ariana Resources PLC
01 July 2020
1 July 2020
AIM: AAU
COMMITMENT BY ÖZALTIN HOLDING A.S.
Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed
exploration and development company operating in Europe , is
pleased to report that Özaltin Holding A.S., through its
subsidiary, Özaltin Insaat, Ticaret and Sanayi A.S. (collectively
"Özaltin") , has formally committed to proceeding with its
acquisition of 53% of both the Salinbas Project ("Salinbas") and
the Zenit Madencilik San. ve Tic. A.S. ("Zenit") joint venture
which is currently owned by Ariana in a 50:50 partnership with
Proccea Construction Co. ("Proccea").
Dr. Kerim Sener, Managing Director, commented:
"We are very pleased that our incoming partners, Özaltin Holding
A.S., have formally committed to completing the definitive
agreements necessary for our proposed transaction to proceed. This
follows the completion of extensive due diligence conducted by SRK
Consulting UK on the Salinbas Project and on the Zenit production
and development assets.
"Ariana, Özaltin and Proccea are now working through the
necessary steps, including seeking Ministerial approval, in order
to complete the transaction. This will lay the foundations for the
completion of our transaction, substantially as proposed in the
MoU, but including various minor modifications to ensure robust
legal documentation, structural changes in the type of company and
practical outcomes in the context of Turkish Law. In addition, at
the earliest possible opportunity, Ariana will make the necessary
arrangements to seek shareholder approval for the transaction via a
General Meeting.
"This transaction will crystallise significant value for the
Company and substantially de-risks the deliverability of the
Salinbas Project, at an important time in its development.
Accordingly, we fully expect shareholders to support the
transaction, definitive agreements for which are expected to be
concluded by the end of August 2020."
Summary of Transaction
Further to the Memorandum of Understanding ("MoU)" announced on
the 25 November 2019, Ariana intends to partially dispose various
interests held in Turkey to Özaltin, including jointly with
Proccea, 53% of Zenit for US$50 million (to be split equally by
Ariana and Proccea), as well as an initial 17% of the Salinbas
Project for US$5 million. In addition, Özaltin commits to injecting
a further US$8 million of equity into the Salinbas Project in order
to acquire 53% of the project. It is envisaged Özaltin will
ultimately hold 53% of Zenit, with Ariana and Proccea each holding
23.5% and that the Salinbas Project ultimately will be acquired by
Zenit, such that the respective shareholdings do not change.
Further information in respect of this part of the transaction will
be provided in due course. The Company also intends to seek
approval from Shareholders for the transaction as soon as
practically possible.
About Ozaltin Holding A.S.
Özaltın Holding A. ., is a conglomerate active in Turkey and
several other countries, in the construction, transportation,
energy, tourism and agriculture sectors. The company was initially
established as Özaltın Construction in 1965 by Nuri Özaltın, who
originated from Artvin Province in Turkey. Recent large scale
construction projects include hydroelectric dams, with installed
annual power production capacity of 5.5 billion KWh and the
Gebze-Orhangazi-İzmir Motorway Build-Operate-Transfer Project of
which it is a 22 year consortium partner. More information on the
company can be found at www.ozaltin.com.tr
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
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
Panmure Gordon (UK) Limited Tel: +44 (0) 20 7886
2500
James Stearns / Atholl Tweedie
Yellow Jersey PR Limited Tel: +44 (0) 20 3004
9512
Dom Barretto / Joe Burgess / Henry arianaresources@yellowjerseypr.com
Wilkinson
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 gross 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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END
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