1st Apr 2020 13:26
(Alliance News) - Ariana Resources PLC on Wednesday said a proposed partner in Turkey has completed its due diligence work.
Back in November, Ariana said it had signed a memorandum of understanding with an unnamed "major" Turkish construction and engineering firm over a partnership at Ariana's Kiziltepe and Salinbas projects, both in Turkey.
Ariana agreed to sell 17% of Salinbas for USD5.0 million, and 53% of its joint venture with Proccea Construction Co for USD50 million. A further USD8 million would be injected into Salinbas by the proposed partner to help get it into production.
On Wednesday, Ariana said due diligence has been completed. The MoU has been extended to April 30 to allow Ariana, the partner, and Proccea to review due diligence information.
Kerim Sener, the managing director of Ariana, commented: "We are pleased to report the completion of the due diligence work of the technical consultants. A period of internal review will now be conducted by the proposed partner and Proccea.
"In addition, draft definitive legal documentation has been prepared and is being reviewed by the parties. We look forward to reporting further on the proposed deal in due course."
Ariana shares were 7.1% higher on Wednesday in London in afternoon trade at 3.00 pence each.
By George Collard; [email protected]
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