2nd Apr 2014 10:49
LONDON (Alliance News) - Ariana Resources PLC Wednesday said its joint venture partner at the Red Rabbit Gold-Silver project in Western Turkey is continuing to earn-in at the site and develop financing for its mine construction.
The gold exploration and development company said its joint venture partner Proccea Construction Co is continuing to earn-in on Red Rabbit, having spent roughly USD1.2 million on its development during 2013.
The company also said that Proccea has indicated that a conditional financing arrangement to fund mine construction has been negotiated with a Turkish bank.
The Kiziltepe Sector will be the initial mine site at Red Rabbit, which is being advanced towards production, following the recent receipt of an Environmental impact Assessment for the site.
Ariana said that Proccea now owns 26.5% of the project and is continuing sole-funding as part of their joint venture agreement through the final permitting and construction phases.
The company also noted that trial mining at Kiziltepe has produced 4,800 tonnes of ore, which is stockpiled on site ready for processing and it has been buoyed on by a positive report which was completed by the General Directorate of Mining Affairs following a recent site visit as part of the mining licence renewal process.
Ariana Resources shares were down 5.6% to 0.850 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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