4th Apr 2014 10:01
LONDON (Alliance News) - Ariana Resources PLC Friday said the mining license which covers the Kiziltepe gold-silver mine has been extended for up to 20 years by Turkish authorities, and a mining permit for gold and silver attached to the new licence has also been granted.
In a statement, the company said the mining license, which was due for renewal by October, had been renewed for an initial five years from April 2. The license will automatically extend for a further 15 years as long as mining starts at the site within the first five years.
"Now that the mining licence and mining permit has been extended...the company will apply for all outstanding permits to enable mine construction to commence within the shortest possible time-frame," it said.
"This is a very significant step towards the construction of a gold-silver mine at our flagship asset at the Kiziltepe Sector of the Red Rabbit project. We are highly encouraged by the speed at which our mining licence application was processed and are now well-placed to commence the final permitting and construction phase of the Kiziltepe mine," Ariana Managing Director Kerim Sener said in a statement.
Ariana Resources holds the Red Rabbit project, loacted in Western Turkey, in a joint venture with Turkey's Proccea Construction Co. The project is the company?s most advanced project.
Under the JV deal, formed in 2009, Proccea should contribute USD8 million during three phases of development, culminating in the permitting for a gold mine at Kiziltepe. In return Proccea will receive a 50% equity stake in the project.
Still, Ariana Resources shares were down 7% at 0.8 pence Friday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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