17th Feb 2021 10:17
(Alliance News) - Ariana Resources PLC on Wednesday announced the completion of its transformational joint venture with Ozaltin Holding AS And Proccea Construction Co following the satisfaction of all agreed conditions.
The exploration and development company, operating in Turkey and Cyprus, first announced the joint venture back in December. Ozaltin is set to acquire a 53% stake in Zenit Madencilik Sanayi ve Ticaret AS, owner of the Salinbas project in Turkey. Ariana holds Zenit as a separate 50:50 joint venture with Proccea.
Shares in Ariana Resources were up 7.3% at 4.72 pence in London on Wednesday.
The partial disposal of Ariana's interests in Turkey was for up to USD37.8 million in cash before costs and taxation, the company said in January.
Approval from the Turkish Competition Authority was then received in January, with Ariana and Proccea set to retain a 24% interest each in the joint venture and the remaining amount to be held by Ozaltin.
In addition, Ozaltin has committed USD8 million to a feasibility study, environmental impact assessment and additional permitting at the Salinbas project.
"This joint venture represents the most significant development in the company's history and we look forward to building on our enhanced position while continuing to deliver on our objective to provide significant value for shareholders. This joint venture validates our successful strategy of simultaneously creating value and mitigating business risks. We are exceptionally pleased to partner with Ozaltin and to continue our excellent relationship with Proccea as we advance our collective interests at the Kiziltepe mine and the Tavsan and Salinbas development projects. These projects contain a combined total JORC Resource of 2.1 million ounces of gold, making our joint venture one of the most significant gold mining ventures in Turkey," said Managing Director Kerim Sener.
By Zoe Wickens; zoewickens@alliancenews.com
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