Ariana Resources Buys Salinbas Gold Project, Northeast Turkey
December 21 2016 - 4:27AM
Dow Jones News
LONDON--Ariana Resources PLC (AAU.LN) said Wednesday it is
buying the Salinbas gold project in Northeastern Turkey from
Eldorado Gold (Netherlands) BV, a subsidiary of Eldorado Gold
Corporation (EGO).
The gold exploration and development company, operating in
Turkey, said Salinbas had been part of a 49:51 joint venture with
Eldorado Sub since 2012. The project comprises three licenses which
are owned 100% by the operating subsidiary, Pontid Madencilik San.
ve Tic. Ltd. Two of the licenses are in process at the General
Directorate of Mining Affairs for conversion to operational
status.
Ariana has bought the 51% of Greater Pontides Exploration BV
previously held by Eldorado Sub in exchange for a nominal cash
consideration, and a net smelter return royalty of up to 2% to
Eldorado Sub, giving it a 100% interest.
The three licenses are held by Pontid Madencilik, a 100% owned
subsidiary of Greater Pontides. Ariana is buying Pontid with its
management team intact and for $60,000 in cash, including certain
fixtures and equipment.
Separate to the arrangement with Eldorado Sub, Ariana said
advance royalty payments of $7,000 a year will be made to the
original owner of the Ardala license for as long as Ariana holds
the license. In addition a 1.5% net smelter royalty will be payable
in the event that the project enters production. The Eldorado
royalty on this license will be 0.5% net smelter return, to ensure
the maximum royalty, it said.
The Salinbas Project is located within a multi-million ounce
goldfield containing several significant gold-copper projects,
notably the adjacent Hot Maden project. It contains a 10 metric
tone indicated and inferred JORC resource, with an average grade of
2.0 g/t Au [gold] and 10.2 g/t Ag [silver].
Shares at 0855 GMT up 0.05 pence, or 3.28%, at 1.58 pence.
-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
December 21, 2016 04:12 ET (09:12 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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