Special dividend for Ariana Resources investors on completion of Özaltin JV (AAU)

Shares in Ariana Resources (LSE:AAU) flew 10% higher on Tuesday 29 September as it announced plans for a special dividend.

Investors will be rewarded once the AIM-listed European gold-silver explorer completes its joint venture with Turkish construction firm Özaltin Holding A.S.

Özaltin is due to pay $30 million as part of the JV process, which includes acquiring 53% of Ariana’s Salinbas project, along with 53% of the Zenit Madencilik JV, currently owned by Ariana in a 50% JV with Ankara-based engineering company Proccea Construction.  

Ariana said its investors will likely receive a special dividend made up of 50% of net proceeds after tax and costs. 

Managing director Dr Kerim Sener added that Proccea would pay Ariana $5.75 million in cash to acquire its 23.5% stake in Salinbas, and would remain actively involved in developing the project. 

Salinbas covers three license areas in the multi-million-ounce Artvin goldfield in northeastern Turkey. 

With shares now climbing above 6.2p that gives Ariana a market cap of over £65 million, £30 million higher than three months ago.  

Ariana shares hit an eight-year high back in April when the explorer announced that Q1 2020 gold production had exceeded guidance by nearly 15% to reach 5,419 ounces at its Kiziltepe mine in west Turkey.

Ariana has a 50% stake in Kiziltepe through its shareholding in domestic firm Zenit Madencilik San. ve Tic. A.S and the mine has been in operation since 2009.

Author: Mark Sheridan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

 

Special dividend for Ariana Resources investors on completion of Özaltin JV (AAU)

Shares in Ariana Resources (LSE:AAU) flew 10% higher on Tuesday 29 September as it announced plans for a special dividend.

Investors will be rewarded once the AIM-listed European gold-silver explorer completes its joint venture with Turkish construction firm Özaltin Holding A.S.

Özaltin is due to pay $30 million as part of the JV process, which includes acquiring 53% of Ariana’s Salinbas project, along with 53% of the Zenit Madencilik JV, currently owned by Ariana in a 50% JV with Ankara-based engineering company Proccea Construction.  

Ariana said its investors will likely receive a special dividend made up of 50% of net proceeds after tax and costs. 

Managing director Dr Kerim Sener added that Proccea would pay Ariana $5.75 million in cash to acquire its 23.5% stake in Salinbas, and would remain actively involved in developing the project. 

Salinbas covers three license areas in the multi-million-ounce Artvin goldfield in northeastern Turkey. 

With shares now climbing above 6.2p that gives Ariana a market cap of over £65 million, £30 million higher than three months ago.  

Ariana shares hit an eight-year high back in April when the explorer announced that Q1 2020 gold production had exceeded guidance by nearly 15% to reach 5,419 ounces at its Kiziltepe mine in west Turkey.

Ariana has a 50% stake in Kiziltepe through its shareholding in domestic firm Zenit Madencilik San. ve Tic. A.S and the mine has been in operation since 2009.

Author: Mark Sheridan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

 

Ariana Resources secures landmark deal for Turkish gold assets (AAU)

Ariana Resources (LSE:AAU) re-captured its multi-year highs on Wednesday, rising by more than 7% to 4.2p on news of a potential transformational deal for its Turkish assets.

Ariana revealed that construction conglomerate Özaltin Holding has formally committed to purchasing 53% of its Salinbas gold project.

The firm will also take a 53% stake in Ariana’s 50:50 Red Rabbit joint venture with Proccea Construction, which holds the producing Kizilitepe gold project and the Tavsan asset in western Turkey.

Ariana, which currently has a £44.3 million market cap, will receive $50 million for the Red Rabbit stake, to be shared with Proccea.

Meanwhile, Özaltin has committed to injecting $8 million of equity into Salinbas with a view to ultimately acquiring the asset in full.

Özaltin’s recent large scale construction projects include hydroelectric dams with installed annual power production capacity of 5.5 billion KWh.

It is also a 22-year consortium partner in the Gebze-Orhangazi-İzmir Motorway Build-Operate-Transfer Project.

Ariana’s managing director Dr. Kerim Sener said he was “very pleased” with the construction firm’s decision, which followed months of due diligence.

"Ariana, Özaltin and Proccea are now working through the necessary steps, including seeking Ministerial approval, in order to complete the transaction.

“This will lay the foundations for the completion of our transaction, substantially as proposed in the MoU, but including various minor modifications to ensure robust legal documentation, structural changes in the type of company and practical outcomes in the context of Turkish Law.  In addition, at the earliest possible opportunity, Ariana will make the necessary arrangements to seek shareholder approval for the transaction via a General Meeting.”

Sener added that the transaction would “crystallise significant value” for Ariana’s shareholders.

In particular, it provides much-needed financial backing to Salinbas, which is now approaching the “decision-to-mine” stage.

“Accordingly, we fully expect shareholders to support the transaction, definitive agreements for which are expected to be concluded by the end of August 2020,” added Sener.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

Ariana Resources renews Ivrindi gold project licence in Turkey (AAU)

Ariana Resources (LSE:AAU) has renewed its holding over the Ivrindi gold project in western Turkey.

On Monday, the company revealed that its operational licence for the 100%-owned asset has been extended by ten years, while a 45-hectare mining permit for gold has also been secured on the same terms.

Meanwhile, land access and initial forestry permits are in place for development while new permit applications are in process.

Ivrindi lies 70 kilometres to the northwest and 100 kilometres by road from Kiziltepe – a producing gold asset held by Ariana in a 50:50 joint venture called Red Rabbit.

Mineralisation occurs on the project within the Kinik prospect, and a mineral resource estimate for the site stands at 207,000 tonnes at 1.65 grams per tonne gold (11,000 ounces) in the inferred category.

Metallurgical testwork at Ivrindi has yielded a strong average gold recovery of 88.5%, and the project also boasts around 16,000 tonnes of gold mineralised material.

Ariana plans to truck this to Kiziltepe, where it will be processed.

Managing director Dr. Kerim Sener said: "Exploration and development activities at our Ivrindi Project were slowed down last year while we went through the process of renewing of our operating licence, which we have now secured successfully for a further 10 years. Prior to this, the Company had demonstrated significant upside and had indicated our objective to mine and truck material from Ivrindi to the Kiziltepe processing plant.

“Accordingly, metallurgical testwork for Ivrindi was completed last year, along with additional trial mining. We currently maintain a stockpile of ore at Ivrindi which is expected to be trucked to Kiziltepe for trial processing in the future. Meanwhile a 1,500m Reverse Circulation drilling programme is planned to test the full strike-length of the mineralised structure at Ivrindi once new forestry permits are secured and we look forward to updating the market on this in due course. "

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

Ariana Resources shines with 50% resource upgrade at Tavsan (AAU)

AIM-listed gold-silver explorer Ariana Resources (LSE:AAU) has reported 50% higher resource indicated at its Tavsan project in Turkey. 

Estimates now sit at 4.49 million tonnes at 1.76g/t gold and 5g/t silver. 

At these levels Ariana said it would have access to 253,000oz gold and 723,000oz silver. 

77% of the resource is now in JORC-compliant measured and indicated categories, the company said. An additional JORC exploration target of 9 million tonnes at 1 to 1.3g/t gold has been updated to reflect the latest information.

Talks with potential lenders are expected to commence imminently, Ariana said, so the JV can secure funding to exploit the project.

Ariana has 50% ownership of Tavsan as part of the Red Rabbit joint venture with Ankara-based engineering firm Proccea Construction. The JV has completed a pre-feasibility study for Tavsan and environmental impact studies are now being arranged.  

AAU shares climbed 8% to 4.05p in Thursday trading. 

Managing Director Dr Kerim Sener said: “We are extremely pleased with this latest resource update for the Tavsan Project. Mine design and associated capital cost estimations are currently being finalised. 

“We expect to proceed with land acquisitions over the coming months and look forward to commencing discussions with potential lenders to fund the development of Tavsan mine.”

Sener added that while initial estimates put first production at Tavsan starting in late 2021, the process had been delayed by Covid-19. Further updates are expected in due course.

Author: Mark Sheridan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance