Ariana gets approval for expanded joint venture in Turkey

Exploration and development company Ariana Resources has received formal approval from the Competition Authority in Turkey for the completion of its joint venture agreements with Özaltin and Proccea Construction, it announced on Tuesday.

The AIM-traded firm said the approval represented the final regulatory condition for the conclusion of the expanded joint venture.

It said the expanded joint venture with Özaltin and Proccea involved the partial disposal of its interests in Turkey in exchange for up to $37.75m in cash before costs and tax.

Ariana and Proccea would retain a 23.5% interest each in the expanded joint venture.

“We are very pleased to have received this approval from the Competition Authority and welcome their support of this transaction,” said managing director Dr Kerim Sener.

“This approval marks the last significant condition precedent for the conclusion of the expanded joint venture.

“We are now working with Özaltin and Proccea to finalise the transaction, so that we can commence activities across our projects within the framework of our new joint venture.”

Dr Sener said the company was already “well underway” with a new drilling programme at Kiziltepe, testing extensions to known vein systems along strike and at depth.

“This programme is being undertaken with the aim of increasing the project's resources and reserves, in parallel with the expansion plans for the processing facilities at Kiziltepe.

“These are exciting times for the company, providing us with a large degree of optionality across our portfolio, which we look forward to further de-risking and crystallising value from in the future.”

At 1504 GMT, shares in Ariana Resources were down 3.53% at 4.92p.