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STRATEGIC INVESTMENT STATUS GRANTED TO KIZILTEPE GOLD MINE
Ariana Resources, the Anglo-Turkish gold exploration and development company has announced that its Kiziltepe Gold-Silver Mine, has been granted Strategic Investment status by the Turkish Government. Kiziltepe is part of the Red Rabbit Joint Venture in western Turkey with Proccea Construction Co.
Highlights:
– Strategic Investment status provides enhanced investment incentives and demonstrates continued support for the mine’s development by the Turkish Government.
– Additional 50% reduction (90% total reduction) in corporation tax and exemptions from customs duties and VAT on components and equipment to be imported.
– Kiziltepe financial models to be revised to include latest incentives.
– Kiziltepe Mine fully funded and permitted ahead of construction start-up.
Michael de Villiers, Chairman, commented:
“We are delighted to have received Strategic Investment status following the recent approval of our forestry permits. These enhanced incentives demonstrate support for our mine development by the Turkish Government, ensuring improvements to the economics of Kiziltepe while encouraging new exploration. This is a win-win for the Company and for Turkey as new resources are discovered and mined.”
Investment Incentives
During 2014, the Joint Venture company, Zenit Madencilik San. ve Tic A.S., applied to the General Directorate of Incentives and Foreign Investment at the Turkish Ministry of the Economy for the inclusion of the project as a Strategic Investment. In addition to existing incentives secured by the company (which includes an 80% reduction in corporation tax), classification as a Strategic Investment entails a total reduction of 90% in corporation tax up to a tax limit of 50% of the capital investment. The Company has now been given the status of a Strategic Investment and will be able to take advantage of strategic investment incentives made available by the Turkish Government. The Company will be revising its financial models to take account of these incentives for the Kiziltepe Mine accordingly.
The incentives secured include:
– Exemption from customs duty domestic and foreign machinery and equipment (100% exemption).
– 90% reduction in corporation tax up to a tax limit of 50% of the capital investment. This equates to corporation tax being paid at a rate of 2% in the early years of the operation, rather than the standard 20% rate.
– Social insurance contributions for all mine employees will be paid by the Turkish Government for 7 years.
– Interest repayment support on any Turkish Lira or foreign currency loan secured by the company.
– VAT exemption domestic and foreign machinery and equipment (100% exemption).
