REG - Ariana Resources PLC - Further Newmont Investment

Ariana ResourcesAnnouncement

28/01/2025 07:00

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RNS Number : 8366U  Ariana Resources PLC  28 January 2025

 

28 January 2025

AIM: AAU

FURTHER NEWMONT INVESTMENT

Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed mineral
exploration and development company with gold project interests in Africa and
Europe, is pleased to announce a further investment by Newmont Ventures
Limited ("Newmont") under the terms of our Exploration Alliance Agreement (the
"Alliance") regarding exploration in south-eastern Europe, announced on 24
March 2022
(https://polaris.brighterir.com/public/ariana_resources_plc/news/rns/story/xee3yzx)
.

Highlights:

·    Newmont to invest a further US$871k in Ariana based on a 30-day
volume-weighted average price ("VWAP") calculated to the 18 December 2024, for
28,880,000 ordinary shares at a price of 2.375p per share.

·    Exploration across the Alliance region will continue to be directed
by Western Tethyan Resources Ltd ("WTR") which is currently 76% owned by
Ariana.

·    The Alliance between Newmont, Ariana and WTR is in its third year of
an initial period of five years; such period being mutually extendable with
future funding requirements of the Alliance to be met by Newmont.

Dr. Kerim Sener, Managing Director, commented:

"This further investment by Newmont Corporation into the Company represents a
further commitment to our exploration programmes in south-eastern Europe under
the Alliance Agreement. Our exploration programmes to date have encompassed
project generative work across Kosovo and North Macedonia, with several other
projects across the Alliance region having been reviewed and assessed. On the
back of the results of these programmes, we are now positioned to undertake
further work across some of the priority targets generated and we look forward
to providing further updates on these programmes as they advance. Furthermore,
we are expecting Newmont to provide additional technical support to the
Alliance aligned to this further investment so that we can advance the planned
exploration programmes across the region."

Mentor Demi, Managing Director of WTR, added:

"We are very pleased with the progress and success of our Exploration Alliance
with the world's largest gold producer, Newmont Corporation. During the first
two years of the Alliance, through the collection of regional baseline data
(geological, geochemical and geophysical), we have generated multiple priority
targets and for which we have applied for new exploration licenses. We have
also drill tested our first project area, Hertica, and successfully outlined
the presence of a Cu-Au-Mo mineralised system.

"Through this financing and the associated technical support from Newmont, as
well as financial and technical support from Ariana as well, we plan to
further develop these targets while continuing regional exploration work,
generating new targets and advancing our existing project pipeline."

Summary of Alliance

·    In the event the Alliance is successful in identifying a project of
sufficient merit for further development by Newmont, such project will be
transferred to a dedicated "Mining Company", which will initially be held 100%
by WTR.

o  Newmont has the option to invest a further US$1 million in the Mining
Company over a further period of two years, enabling it to earn-in to 60% in
such Mining Company.

o  Expenditure of a further US$15 million on a pre-feasibility study, which
establishes a JORC or NI43-101 resource of over two million ounces of gold,
will enable Newmont to earn-in to 75%.

o  Should Newmont decide to develop a mining project, funding will be on a
pro-rata basis unless WTR elects not to contribute, in which case Newmont will
earn-in to a maximum of 85%.

o  If either party withdraws from the Mining Company or dilutes below 10%,
such party will relinquish its interest in return for a 2% NSR.

·    Upon conclusion of the Alliance term, and in the event that no Mining
Company is established, Ariana, WTR and Newmont will each retain a copy of the
Alliance Database, with Ariana granting a 1% NSR and WTR granting a 0.75% NSR
to Newmont.

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

 

Contacts:

 

 Ariana Resources plc                           Tel: +44 (0) 20 7407 3616
 Michael de Villiers, Chairman
 Kerim Sener, Managing Director
 Beaumont Cornish Limited (Nominated Adviser)   Tel: +44 (0) 20 7628 3396
 Roland Cornish / Felicity Geidt
 Panmure Liberum (Joint Broker)                 Tel: +44 (0) 20 7886 2500
 Atholl Tweedie / Rauf Munir
 Zeus Capital Limited (Joint Broker)            Tel: +44 (0) 203 829 5000

 Harry Ansell / Katy Mitchell / George Krokos

 Yellow Jersey PR Limited (Financial PR)        Tel: +44 (0) 7983 521 488
 Dom Barretto / Shivantha Thambirajah /         arianaresources@yellowjerseypr.com (mailto:arianaresources@yellowjerseypr.com)

Bessie Elliot

 

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

Editors' Note:

 

About Ariana Resources:

Ariana is an AIM-listed mineral exploration and development company with an
exceptional track-record of creating value for its shareholders through its
interests in active mining projects and investments in exploration companies.
Its current interests include a major gold development project in Zimbabwe,
gold production in Türkiye and copper-gold exploration and development
projects in Cyprus and Kosovo.

 

Ariana owns 100% of the Dokwe Gold Project ("Dokwe") in Zimbabwe. Dokwe is
made up of the Dokwe North and Dokwe Central gold deposits which are located
in the Tsholotsho District near the city of Bulawayo. The deposits have a
combined JORC Measured, Indicated and Inferred Resource of over 1.83 million
ounces of gold (as at June 2024) and the project represents the largest
undeveloped gold project in Zimbabwe.

 

The Company holds 23.5% interest in Zenit Madencilik San. ve Tic. A.S. a
joint venture with Ozaltin Holding A.S. and Proccea Construction Co. in
Türkiye which contains a depleted total of c. 2.2 million ounces gold
equivalent (as at March 2024, using a price ratio of 90 Ag to 1 Au). The joint
venture comprises the Kiziltepe Mine and the Tavsan and Salinbas projects.

 

The Kiziltepe Gold-Silver Mine is located in western Türkiye and contains a
depleted JORC Measured, Indicated and Inferred Resource of 171,700 ounces gold
and 3.3 million ounces silver (as at March 2024). The mine has been in
profitable production since 2017 and has been producing at an average rate of
c.22,000 ounces of gold per annum. A Net Smelter Return ("NSR") royalty of
2.5% on production is being paid to Franco-Nevada Corporation.

 

The Tavsan Gold Mine is located in western Türkiye and contains a JORC
Measured, Indicated and Inferred Resource of 311,000 ounces gold and 1.1
million ounces silver (as at March 2024). Following the approval of its
Environmental Impact Assessment and associated permitting, Tavsan is being
developed as the second gold mining operation in Türkiye and is currently in
construction. A NSR royalty of up to 2% on future production is payable to
Sandstorm Gold.

 

The Salinbas Gold Project is located in north-eastern Türkiye and contains
a JORC Measured, Indicated and Inferred Resource of 1.5 million ounces of gold
(as at July 2020). It is located within the multi-million ounce Artvin
Goldfield, which contains the "Hot Gold Corridor" comprising several
significant gold- copper projects including the 4 million ounce Hot Maden
project, which lies 16km to the south of Salinbas. A NSR royalty of up to 2%
on future production is payable to Eldorado Gold Corporation.

 

Ariana owns 76% of UK-registered Western Tethyan Resources Ltd ("WTR"), which
operates across south-eastern Europe and is based in Pristina, Republic of
Kosovo. The company is targeting its exploration on major copper-gold deposits
across the porphyry-epithermal transition. WTR is being funded through a
five-year Alliance Agreement with Newmont Ventures Limited (www.newmont.com)
and is separately earning-in to up to 85% of the Slivova Gold Project.

 

Ariana owns 61% of UK-registered Venus Minerals PLC ("Venus") which is focused
on the exploration and development of copper-gold projects in Cyprus, some of
which are in application, containing a combined JORC Indicated and Inferred
Resource of 16.6Mt @ 0.45% to 0.80% copper (excluding additional gold, silver
and zinc).

 

Ariana owns several investments in listed and private companies via its
Australian subsidiary Asgard Metals Pty. Ltd. ("Asgard"), which also provides
technical input into the various investee company exploration programmes.
Investments have been made in high-value potential, discovery-stage mineral
exploration companies located across the Eastern Hemisphere and within easy
reach of Ariana's operational hubs in Australia, Türkiye, UK and Zimbabwe.
Its most advanced interest is through a 2% holding of Panther Metals Limited
(ASX: PNT).

 

Panmure Liberum Limited and Zeus Capital Limited are brokers to the Company
and Beaumont Cornish Limited is the Company's Nominated Adviser.

 

For further information on Ariana, you are invited to visit the Company's
website at www.arianaresources.com.

 

Ends.

 

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