Ariana Resources , the gold exploration company focused on Turkey, announced that it signed a Heads of Agreement ('HOA') with European Goldfields Limited. The HOA is for the joint development of Ariana’s properties in north-eastern Turkey, including the Ardala copper-gold porphyry plus eleven other licences covering 168 square kilometres.
Under the agreement, European Goldfields will own 51% of
the properties in return for funding all development costs until completion of a Bankable Feasibility Study. At BFS stage European Goldfields’ interest will increase to between 80%-90%.
Ariana added that European Goldfields had also agreed to subscribe for new shares in Ariana at 5 pence per share, for a total consideration of £0.89 million.
Dr. Kerim Sener, Managing Director, commented:
"This joint venture forms part of our strategy to advance our existing ground-holding in north-eastern Turkey, without detracting from our focused resource development programme in western Turkey. We are also very pleased to see European Goldfields become a significant investor in the Company. The placement, at a premium to market, is a strong vote of confidence, and funds us through the next stages of our development of the Kiziltepe project and acquisition of the Tavsan project."