1st May 2020 13:20
(Alliance News) - Ariana Resources PLC on Friday said it has completed the repayment of the construction capital loan of USD33 million to Turkiye Finans Katilim Bankasi AS.
The loan was repaid by Zenit Madencilik San ve Tic AS, a equally owned joint venture between Ariana and Proccea Construction Co, owner of the Kiziltepe mine in Turkey.
After the repayment of all loans, profits from the operation will be shared on a 51-49 basis between Ariana and Proccea, respectively.
The gold exploration and development company said repayments against the construction capital loan commenced in December 2014 and have been completed as planned, according to mandated repayment dates, up to the end of April.
"This serves to demonstrate the strong operating credentials of the joint venture and the profitability of the Kiziltepe mine," said Ariana Managing Director Kerim Sener.
"Meanwhile our new exploration drilling programme which commenced late last week at Kiziltepe is proceeding as planned," Sener added.
Ariana explained that this programme was designed to follow-up on the successful deep drilling which we completed at Arzu South last year. The company reported that vein mineralisation has been encountered in the first of the new drill holes, which terminated at about 200 metres depth, demonstrating the vertical continuity of the vein system as predicted.
"This bodes well for the future development of the Kiziltepe mine, as we consider its transition to underground operations in the future," concluded Sener.
AIM-listed Ariana shares were trading 4.1% higher in London on Friday at 3.33 pence each.
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