Ariana Resources Share Discussion Threads

[1candc] 07/12/2020 08:13

Highlight


"The completion of this updated Mineral Resource Estimate for the Magellan Project represents another important step forward for Venus Minerals. A combined resource of 9.5Mt @ 0.65% Cu with significant additional potential for precious-metals and zinc is very much closing in on our initial target of >10Mt @ 0.6% Cu, 0.6% Zn, 0.5 g/t Au and 6 g/t Ag for the Project. Additional exploration and resource drilling in the vicinity of these resource areas is likely to yield further growth of the Magellan resource, and drill planning is being undertaken accordingly.

[nov31] 07/12/2020 08:10

What a. Great day this is shaping up to be - and share price hardly reflecting it yet. pleased to have bagged some more at 5.58

[1candc] 07/12/2020 08:09

A double RNS day!

[1candc] 07/12/2020 08:09

7 December 2020

AIM: AAU



INCREASE IN JORC RESOURCES AT THE MAGELLAN PROJECT, CYPRUS



Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed exploration and development company operating in Europe, is pleased to announce additional resources estimated in accordance with the JORC 2012 Code for the Magellan Project ("Magellan" or "the Project"), which is 100% owned by Venus Minerals Ltd ("Venus")*. Venus is focused on the exploration and development of copper and gold assets in Cyprus. Ariana is currently earning in to 50% of Venus.



Highlights:



· New Sha Sector JORC Mineral Resource Estimate of 1Mt @ 0.80% Cu + 0.3% Zn (Inferred), including a higher-grade zone of 0.5Mt @ 1.13% Cu + 0.3% Zn (Inferred); potential for additional resources to be defined due to lack of modern exploration within the immediate area.



· Significant potential for gold and silver rich zones to be defined within the resource at the New Sha Sector, with a JORC Exploration Target of 0.5Mt to 1.5Mt for 6,500oz to 41,000oz gold at an average grade of 0.40 g/t Au to 0.85 g/t Au.



· Revised JORC Mineral Resource Estimate (stated gross) of 9.5Mt @ 0.65% Cu# (Inferred), with additional potential for gold, silver and zinc-rich zones (up to 0.6% Zn) across the Klirou, Kokkinoyia and New Sha sectors of the Magellan Project.



· New exploration drill-hole planning currently underway to test several target areas within the prospective area.



Dr. Kerim Sener, Managing Director of Ariana Resources, commented:



"The completion of this updated Mineral Resource Estimate for the Magellan Project represents another important step forward for Venus Minerals. A combined resource of 9.5Mt @ 0.65% Cu with significant additional potential for precious-metals and zinc is very much closing in on our initial target of >10Mt @ 0.6% Cu, 0.6% Zn, 0.5 g/t Au and 6 g/t Ag for the Project. Additional exploration and resource drilling in the vicinity of these resource areas is likely to yield further growth of the Magellan resource, and drill planning is being undertaken accordingly.



"Outside of these resource areas, the Venus exploration team have been focused on delivering an initial percussion drilling programme on several new exploration targets identified across its portfolio. These targets have been developed based on a revised geological model and related geological concepts, the results of which will be integrated in to the drill planning for the Magellan area. We look forward to providing further updates on this exploration in due course."



* Further information about Venus Minerals and its projects is available on the Company's website, www.venusminerals.co.



# Resources are quoted gross with respect to the Venus Minerals Ltd earn-in.



This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.



Introduction



Following the completion of the Mineral Resource Estimate for the Kokkinoyia and Klirou deposits (see announcement 15 October 2020), the Ariana and Venus exploration teams are pleased to report the completion of a Mineral Resource Estimate for the New Sha Sector in accordance with JORC 2012. New Sha is the third deposit currently comprising the Magellan Project area (Figure 1).



Copper, gold, silver and zinc mineralisation at the Magellan Project is associated with Volcanogenic Massive Sulphide (VMS) deposition at or near the palaeo-seafloor. The mineralisation contains localised lenses of massive metal sulphides (dominantly pyrite, chalcopyrite and sphalerite) which are surrounded by pervasive chloritic alteration and sulphide dissemination in the volcanic host rocks. The mineralisation is partly structurally controlled, associated with N-S trending horst- and graben-bounding normal faults. Mineralisation is stratigraphically located near, or at the contact between, two gently NNE-dipping (10-20˚) pillow basalt sequences; the Upper Pillow Lavas (UPL) and Lower Pillow Lavas (LPL), of Upper Cretaceous age (90 Ma to 80 Ma) in the Troodos Ophiolite.



Despite subtle variations in their structural and stratigraphic settings, the nature of mineralisation at Kokkinoyia, Klirou and New Sha is broadly similar, comprising massive sulphide lenses, zones of disseminated sulphides, and associated stockworks. Each deposit contains significant amounts of copper, zinc, gold and silver, although the ratios of these elements vary locally. Recent advances in understanding how these deposits form suggest all three Sectors have scope for expansion, and drilling programs are currently being planned.

[kaos3] 07/12/2020 07:54

but good news all the way - just want to clear up the future cash flow streams in general

I ll be buying today if there is an opportunity

[kaos3] 07/12/2020 07:50

we completely agree.

"be free-carried on further costs associated with the feasibility-stage development of the Salinbas Project , up to a development decision"

low capital

building a mine and processing

high capital intensity

pay for the project does equal finance the project or provide finance for the project

[soulsauce] 07/12/2020 07:48

YEEEEEEEAAAAAY great news, never in doubt lol.

Mov31 it's $37.5m now with the 2m from the satellite projects.
Hopefully we will soon hear where new projects and acquisitions are. That is where the real value will be added.

[lottsgold] 07/12/2020 07:40

This part makes that clear?2. be free-carried on further costs associated with the feasibility-stage development of the Salinbas Project , up to a development decision ;

[lottsgold] 07/12/2020 07:39

Ozaltin are paying the 8 million as part of the deal to get us through to mine development and then the company will take on the debt to build the mine from what I understand in the RNS? The new JV will have debts at some point but we should be making plenty of profits as the mines to pay the debts will be up and running?

[kaos3] 07/12/2020 07:34

Lotts - Salinbas is funded by Ozaltin - is it debt? - will Salinbas first repay this debt before there is a free cash flow? Will the whole JV be repaying this debt?

Is it equity? what is the proportion?

TIA

[nov31] 07/12/2020 07:33

Main thing is the deal is done, finalised and agreed. It needs shareholder approval also but all that is perfectly normal. sure some risk remains to the deal but substantially less than before parties finally agree and commit to the deal.

[nov31] 07/12/2020 07:30

Be interesting to see how much the share price increases and whether today bucks the trend when good news ends up seeing us finish in the red. Let's hope for a deep rich navy blue finish today. All LTH deserve it, and despite our frustrations at times, a huge well done to Kerim and MDV!

[cyberbub] 07/12/2020 07:29

Er.... It says still conditional on regulatory approval... After all this time! So that could mean months yet, Turkish bureaucracy is hardly lightning quick?

[nov31] 07/12/2020 07:28

Annoucnement says after costs they have intention of distributing HALF of cash back to shareholders. SO purely speculation but let's say after costs there is $34m of the 35.7m left = $17m back to shareholders. $17m at $1.34 to £1 = £12.69m divided by 1.1bn shares = 1.15p a share dividend. Personally I think they'll distribute back 1p a share as maiden dividend but it could be up to 1.2p

[lottsgold] 07/12/2020 07:27

Kaos I think there will be free cash flow. Tavsan will be funded by debt, and paid when the most is up and running by the cash flow from the mine. Salinbas is funded by Ozaltin. Kiziltepe is very profitable as we have just seen by latest results. We will have plenty of cash, cash flow from multiple mines, Salinbas and Cyprus to add value whilst looking at other opportunities...different animal!

[cbeadle] 07/12/2020 07:23

They could buy a good stake in CHF in Cyprus

[kaos3] 07/12/2020 07:18

so we get 1 divi and then the producing JV cash flow will be used for the mine development, future debt repayments etc. - long time no cash see

we get a bonus of being an exploration contractor to the JV and be rewarded from the JV if we find something good

explore and go on elsewhere with what is left from one off payment on our own - cyprus, Turkey, whole region

- am I correct

will be interesting observing the future AAU cash burn

[paul280i] 07/12/2020 07:16

Plas, how right you were!

[catsick] 07/12/2020 07:12

Going to be a lumpy special div , I would prefer a smaller regular one but they will have 20 million usd cash to play with this way which should fund a heap leach operation in Cyprus if they find some ok grade dirt there

[jaf1948] 07/12/2020 07:02

Hallelujah.

[temujiin] 07/12/2020 07:02

JOINT VENTURE CONDITIONAL AGREEMENTS COMPLETED

Ariana Resources plc ("Ariana" or the "Company"), the AIM-listed exploration and development company operating in Europe, is pleased to announce the completion of conditional agreements on its joint venture with Özaltin Holding A. . ("Joint Venture" or "JV"), via its subsidiary, Özaltin Insaat, Ticaret and Sanayi A.S. (collectively "Özaltin") and with Proccea Construction Co. ("Proccea") (collectively "the Parties"). Özaltin will be acquiring 53% of both Pontid Madencilik Sanayi ve Ticaret A. . ("Pontid"), the owner of the Salinbas Project ("Salinbas") and the existing Zenit Madencilik San. ve Tic. A. . ("Zenit") joint venture which is currently owned by Ariana in a 50:50 partnership with Proccea.

The Joint Venture with Özaltin and Proccea involves the partial disposal of the interests of the Company in Zenit and Pontid in exchange for US $35.75 million in cash ("the Transaction"). On completion, Ariana will retain a 23.5% interest in the Joint Venture, as will Proccea. The Parties have also agreed to the sale of Ariana's remaining projects, under its subsidiary Galata, to Zenit for an additional US$2 million in cash (as announced on 2 December 2020).

Highlights:

-- JV to continue the development of the 0.6Moz Red Rabbit Project and to advance the 1.5Moz Salinbas Project.

-- JV to be owned 53% Özaltin, 23.5% Ariana, 23.5% Proccea, with Proccea as Manager.
-- Cash payment to Ariana of US$37.75 million, before costs and taxation, inclusive of the sale of Ariana's remaining projects to Zenit.

-- US$8 million to be committed by Özaltin to fund a Feasibility Study, EIA and additional permitting on Salinbas.

-- Ariana to continue exploration across the JV projects with the aim of defining additional resources and in the pursuit of new project opportunities elsewhere.

-- The Transaction remains conditional inter alia on Ariana shareholder approval, following the publication of a Circular to Shareholders and the satisfactory completion of a General Meeting of the Company. The Transaction is also conditional on the necessary regulatory approvals in Turkey.

Dr. Kerim Sener, Managing Director, commented:

"In preparing this announcement, I have chosen to repeat and reflect on the comments made when we entered into our original JV with Proccea in 2010, much of which is wholly relevant to the present:

{"This JV [...] has created a solid set of foundations to spur the growth of your Company. We are delighted to be in partnership with a strong and competent JV partner and we look forward to adding further value to our assets via this JV. The partners are aiming to see the Kiziltepe Sector through to production in approximately two years, and to continue the advancement of the Red Rabbit project area as a whole. Indeed, the partners also intend to grow the JV company beyond its original scope, to include new project development opportunities in the region."}

While it took our original JV four more years to bring Kiziltepe into production, jointly navigating the associated permitting and financing hurdles had the effect of adding significant strength, resilience and trust to our partnership. Furthermore, the closing line of our 2010 statement was particularly prophetic, and it is upon these solid foundations that we have chosen to further enhance our JV with the addition of Özaltin into our proven partnership with Proccea. Özaltin brings significant expertise and capacity in infrastructure development in Turkey and has been responsible for several large-scale government funded projects in recent years. We look forward to working with Özaltin and with our original partners, Proccea, to continue to develop a successful and profitable mining business in the years ahead".

Muzaffer Ozdemir, CEO, Özaltin Holding A.S., commented:

"We are excited to be entering into a partnership with Ariana and Proccea. We recognise the capabilities demonstrated within their existing JV and can see the opportunities to grow their active mining portfolio. In particular, we are keen to see the Tavsan Mine developed as the second operation within the JV, while we collectively work towards bringing the Salinbas Project through feasibility and into development. We are now poised to become a substantial gold producer in Turkey, demonstrating capabilities spanning exploration, process design, construction and mining. There are few companies, either nationally or internationally that have this level of full-spectrum capability in the gold mining industry."

Conditions Precedent to Completion

Remaining significant conditions precedent to completion of the Transaction include:

-- Approval for the Transaction through the Competition Authority in Turkey.
-- Ariana shareholder approval to be sought for the Transaction at a General Meeting, for which a Circular is expected to be sent to Shareholders during the week commencing 7 December.

Details of the Joint Venture

The Company, through its operating subsidiary, Ariana Exploration and Development Ltd and Galata Madencilik San. ve Tic. Ltd. ("Galata"), entered into two separate share purchase and shareholders agreements ("Shareholders Agreements") with Özaltin and Proccea on 4 December 2020. One shareholders agreement relates to the acquisition of 53% of Zenit by Özaltin for US$50 million, to be split equally between Ariana and Proccea against the transfer of 26.5% shares each in Zenit. The second agreement relates to the acquisition of an initial 17% of Pontid for US$5 million. Under the terms of this latter agreement, Özaltin commits to injecting a further US$8 million of equity into Pontid in order to increase its shareholding to 53% of Pontid from the outset. This will be mirrored by a commitment from both Proccea and Galata to acquire 23.5% each of Pontid for US$ 5.75 million each in cash. The Company has also entered into a licence transfer agreement between Galata and Zenit, concerning the sale of three peripheral licences, which include the Kizilcukur Project ("Satellite Projects") to Zenit for US$2 million in cash.

The Shareholders' Agreements govern the principles of the new Joint Venture and the operation of the JV company prior to and following the merger of Pontid into Zenit. On final completion of the Transaction, all interests in the projects by the parties will be held through Zenit. Zenit will be owned 53% by Özaltin, 23.5% by Ariana and 23.5% by Proccea. Ariana and Proccea will maintain board representation on Zenit, with one director each, and Özaltin will be able to appoint two directors. Management control will remain with Proccea, and both the Ariana and Proccea shareholdings are free-carried (up to a development decision) in respect of the feasibility stage development of Salinbas, and are subject to minority protection rights through the Turkish Commercial Code. Control of Zenit will be based on agreement of 75% of the voting shares, equivalent to three out of the four directors, except in special cases, such as amendments to the company's articles of association, where unanimous approval is required.

Prior to the Transaction Ariana holds:

1. 50% of Zenit, which operates the Kiziltepe Mine and its associated exploration and development properties, notably the Tavsan Project; and

2. 100% of Pontid, which holds the Salinbas Project, upon which preliminary exploration work has defined a JORC Measured, Indicated and Inferred Resource of c. 1.5 million oz gold.

3. 100% of the Satellite Projects held via Galata.
Following the Transaction Ariana will:

1. hold 23.5% of Zenit which will hold the Kiziltepe Mine, Tavsan Project and associated exploration and development properties (including the Satellite Projects), in addition to the Salinbas Project;

2. be free-carried on further costs associated with the feasibility-stage development of the Salinbas Project , up to a development decision ;

3. be party to a shareholder and Joint Venture agreement with Ozaltin and Proccea, retaining representation on the Zenit board;

4. be responsible for exploration across the Joint Venture, which will be reimbursed at cost plus a bonus of two times the exploration cost for increases to project resources of over 10% or following the vend-in of new projects; and

5. have received payments, before costs and taxation, totalling US$30 million from Ozaltin for the dilution in its interests in Zenit and Pontid, and US$5.75 million from Proccea to reflect the reduction in ownership percentage in Pontid.

6. be receiving US$2 million from Zenit for the transfer of the Satellite Projects.