- 9.9% interest sold for US$3.7m gross cash.
- Ariana retains 9.9% interest in owner-operator of Tavşan mine and Salinbas project
- Transaction provides additional non-dilutionary funding for Dokwe gold project
- Has proforma cash of $39m
Ariana Resources (ASX:AA2) has sold its legacy 9.9% interest in the Kiziltepe Sector in Türkiye to Proccea Construction Co. following the conclusion of commercial operations.
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“This agreement with Proccea marks the successful conclusion of Ariana’s involvement in the Kiziltepe mine, which we progressed from a greenfields exploration project into a profitable gold-silver operation over the past two decades,” MD, Dr Kerim Sener, said.
“We are immensely proud of what has been achieved and I would like to sincerely thank the Kiziltepe team, our partners and the local communities, whose support has been instrumental to the mine’s success over the past 20 years.”
“Kiziltepe has produced more than 162,000 ounces of gold and 1.78 million ounces of silver, generating approximately US$69 million in cash returns for Ariana from a total investment of just US$8 million.
“These returns have strengthened the Company and enabled us to reward shareholders, including through special dividends totalling US$10 million in 2021 and 2022,” Dr Sener said.
“This transaction monetised a residual interest, relieves Ariana from future liabilities and further simplifies Ariana’s portfolio. Most significantly this sale further strengthens our balance sheet and further refines our focus on advancing our flagship Dokwe Gold Project in Zimbabwe, while retaining exposure to future value creation through our 9.9% interest in the producing Tavşan Mine and the Salinbaş project.”
The division of Zenit and an in specie distribution of Kiziltepe Sector interests to the shareholders of Zenit, includes the underlying assets and liabilities associated with Kiziltepe.
Under the sale agreement, the company, through its wholly-owned Turkish subsidiary, Galata Mineral, has transferred to Proccea a total of 98,693,287 registered shares represented 9.9% of Kiziltepe’s total issued share capital.
The aggregate consideration for the transfer shares received by Ariana was US$3,712,500, payable in cash. The consideration has now been received in full and the transfer of the transfer shares occurred simultaneously with payment.
In addition to the above consideration, Galata has been reimbursed US$800,000 from Zenit to fully settle an outstanding debt.
AA2 was steady 28.5¢. Mkt cap $879.8M.
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