Business
Joint Venture to Develop Sindirgi and Tavsan
Joint Venture to Develop Sindirgi and Tavsan.
About this update from Ariana Resources Plc
[{"type":"text","content":"\n \n\n\n\n27th October 2009\nAIM / PLUS Markets: AAU\n\n JOINT VENTURE TO DEVELOP SINDIRGI AND TAVSAN\n\nAriana Resources plc (\"Ariana\" or \"the Company\"), the gold\nexploration and development company focused on Turkey is pleased to\nannounce a Memorandum of Understanding (\"MoU\") on a joint venture\n(\"JV\") agreement designed to advance the Company significantly\ntowards its goal of becoming a long term gold producer.\n\nHighlights\n\n\n * Good-will payment of US$0.5 million on signature of MoU\n\n\n\n * 50-50 JV to develop the Sindirgi and Tavsan projects\n\n\n\n * US$8 million funding to be committed to feasibility and plant\n construction\n\n\nDetails of MoU\n\nShareholders will recall that in the Company's half-yearly report\nreleased on 29 September 2009, Dr Kerim Sener, Managing Director,\nexplained that the Company was examining the feasibility of combining\nits two principal projects, Sindirgi and Tavsan, into a single\nconceptual entity - the Red Rabbit Project - and that it was\nconsidering the development of this project as a joint venture with a\nTurkish engineering firm.\n\nThe Company now announces that, through its operating subsidiary\nGalata Madencilik San. ve Tic. Ltd., it has entered into a MoU with\nProccea Construction Co. (\"Proccea\"), an integrated Turkish turn-key\nconstruction firm involved in a range of business sectors from gold\nprocessing plants to major hotels. The MoU provides for the\nnegotiation of formal joint venture documentation which is expected\nto lead to the establishment of a long term gold mining operation in\nTurkey.\n\nThe JV agreement envisaged in the MoU is a 50-50 joint venture\nbetween Ariana and Proccea to be formalised by the establishment of a\nTurkish joint stock company which will hold and develop the assets.\nProccea will then be committed to fully-fund an Environmental Impact\nAssessment and Feasibility Study on Red Rabbit and to commence\nconstruction of the gold processing plant. By funding US$8 million,\nProccea will earn-in to its 50% share in the joint stock company. It\nis intended that the additional capital requirements for plant\nstart-up may be met by a credit facility to be arranged by the\njoint-stock company. On the successful commissioning of the plant,\nprofit share within the joint stock company will be 51% Ariana and\n49% Proccea.\n\nUnder the term...