2nd Dec 2019 11:56
(Alliance News) - Ariana Resources PLC is to take a 50% stake in a company focused on copper and gold projects in Cyprus, it said on Monday.
London-based Ariana has signed an earn-in to buy the interest in Venus Minerals Ltd, which holds the Klirou and Kokkinoyia gold prospects. It intends to develop them together as the Magellan project.
It has already spent EUR600,000 on taking a 6% holding in the company, and has committed to a further EUR2.4 million of expenditure over the next three years.
Klirou has a historical resource of 4.3 million tonnes of ore at 0.5% copper and 0.8% zinc plus unquantified gold, while Kokkinoyia holds 5.2 million tonnes at 0.7% copper and an unquantified amount of gold.
Venus, which is registered in London but based in Cyprus, is currently reviewing scoping and pit optimisation studies as it prepares a preliminary economic assessment.
Ariana said resources at the mine are open in several directions, and there is "significant" potential for gold-rich zones which have been missed by previous exploration work.
Ariana Managing Director Kerim Sener said: "We are exceptionally pleased to expand our interests within the Tethyan metallogenic belt and to do so in the operationally-friendly jurisdiction of Cyprus represents the fulfilment of a well elucidated long-term diversification strategy of the company.
"Cyprus holds a global reputation for high-quality copper deposits, which tend to occur in distinct clusters; many of which remain significantly underexplored. We are also pleased to be working alongside a first-rate in-country team, committed to the development of the Cypriot mining industry."
"Ariana is making full use of its regional exploration and development expertise. After two years of careful due diligence and relationship building in Cyprus, Ariana is committed to the successful development of Venus Minerals," Sener continued.
"We are also taking advantage of our geographic proximity to get maximum cost-time benefit from our existing team and infrastructure. In Venus, we now [have] what we believe to be an exceptional investment opportunity which we look forward to supporting for the benefit of all stakeholders."
Ariana currently owns gold projects in Turkey, which is the biggest producer of the precious metal in Europe. In 2018, it produced 27,110 ounces of gold from the Kiziltepe mine.
Shares were 0.6% higher on Monday in London at midday at a price of 2.39 pence each.
By George Collard; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
Ariana