Today Ariana Resources (LON:AAU) released the long awaited news that its joint venture agreement with Proccea Construction Co has been completed and that the transition from "Gold Explorer" to "Gold Producer" is now formally underway (click here to view). This is certainly exciting news, and something Investors have been eagerly anticipating.
We published our original Value Proposition on Ariana Resources in January (click here to view) when we highlighted the Company's defined plans to progress from Gold explorer to Gold producer. It is well worth another scan, if only to see how progress on all fronts has consistently met with the Company's stated objectives. We are now working on updating the Value Proposition, taking into account all development to date; a fully updated version will be published shortly.
In the meantime, we took this opportunity to put a few quick questions to Managing Director, Kerim Sener to give him the chance to expand on todays exciting news!
MM: From our understanding, it appears you had already started working in partnership informally prior to JV completion. Can you tell us the significance of the JV news today both in terms of the project and your partnership with Proccea?
KS: That is correct. Ariana and Proccea have been working steadily on the project over the last several months, ensuring that our understanding of the project developed in line with our progress on the shareholders agreement. In this time the partners have had the opportunity to grow our relationship and to learn more about each others strengths and capabilities. The JV news today marks the formalisation of this relationship and the shareholders agreement provides the guidelines under which the partners will operate the JV. The real work starts now and the partners are keen to get cracking with the feasibility study and the EIA.
MM: In phase 2 of the project it has been stated that Zenit will need to seek estimated funding of $25 million, what are the options available to the JV company for this funding?
KS: We are primarily looking at Turkish bank finance, but have not ruled out international finance or certain other funding options. We will aim to secure the best terms available to the company once we have the feasibility study and EIA completed. There are various mechanisms by which this finance could operate and at this…
