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Ariana Resources PLC - exploration and development company with interests in Turkey and Cyprus - Provides update on proposed new joint venture with Ozaltin Holding AS. Ozaltin is to acquire 53% of both the Salinbas project in Turkey and an existing Zenit Madencilik San ve Tic AS joint venture owned by Arian and Proccea in a 50-50 partnership. Joint venture to take place by way of partial disposal of Ariana's interests in Zenit and Salinbas in exchange for USD30 million cash. Ariana notes that: "The parties are at an advanced stage of finalising the proposed definitive joint venture agreements governing the transaction."
Terms substantially the same as November 2019 announcement but with "certain structural changes". Agreements to be completed concurrently so that Ozaltin owns 53% of Zenit and Salinbas from the outset, with Proccea acquiring its 24% stake in Salina from Ariana for USD5.8 million cash. Salinbas owner Pontid Madencilik San ve Tic Ltd converted into a joint stock company and licences owned by Pontid reissued to reflect the new company name of Pontid Madencilik San ve Tic AS. Approvals sought and received from the General Directorate of Mining & Petroleum Affairs for change in ownership of the Zenit licences and bankers approve the transaction. Consent is being sought from Turkey's competition authority for the deal.
Ariana Managing Director Kerim Sener: "Over the past few months Ozaltin, Proccea and Ariana have been working towards preparing the required agreements in order for the proposed Joint Venture to proceed. Following the formal commitment by Ozaltin to finalise the definitive agreements in July, the parties have completed final and mutual legal and corporate due diligence. In addition, certain corporate and other structural changes have now been finalised, which enable the deal to be completed, having secured preliminary government approvals in Turkey."
Current stock price: 6.22 pence; up 10% on Tuesday
Year-to-date change: up more than 100% from 2.48 pence on December 31
By Anna Farley; annafarley@alliancenews.com
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