Ariana outlines reorganisation of Turkish assets

The AIM-traded firm held a 23.5% stake in both companies through its wholly-owned subsidiary, Galata Mineral.

As part of the merger, Zenit acquired 100% of Pontid's shares, consolidating ownership of all advanced mines and projects in Türkiye, including the Kiziltepe, Tavsan, and Salinbas projects.

Ariana said it maintained a 23.5% interest in the assets through its stake in the newly-enlarged Zenit.

In addition to the merger, Ariana reported ongoing gold and silver production from the Kiziltepe and Tavsan mines, with around 8,500 ounces of gold and 66,300 ounces of silver produced up to the end of June.

The paid-up capital in Zenit had also been increased to TRY 90.54m (£2.03m).

“This concludes the process that started in 2021, following the partial divestment in Türkiye to Ozaltin Holding and the restructuring of our interests in Zenit Madencilik with Proccea Construction,” said managing director Dr Kerim Sener.

“Due to the different funding structure and requirements of Zenit and Pontid, it was determined at that time to pause the contemplated merger until the Tavsan mine construction was sufficiently advanced.

“The past two years have witnessed significant progress at Tavsan, held by Zenit along with Kiziltepe, while the Salinbas asset, held by Pontid, has also advanced significantly.”

Dr Sener said that the company determined that it was the right time to complete the merger as initially planned and provided for in the shareholders agreement.

“This action substantially simplifies the way we hold our interests in Türkiye and helps prepare the ground ahead of our planned ASX listing later in the year.

“We continue working with our partners in Türkiye to expand our joint interests in Türkiye and potentially further afield.”

“Meanwhile, gold and silver production from Kiziltepe and Tavsan continues as planned, with around 8,500 ounces of gold and 66,300 ounces of silver produced to the end of June, recording over $20min revenue.”

Trucking operations from Tavsan to Kiziltepe had intensified in recent months, Dr Sener added, and were now running at a rate of 50 trucks per day.

“Meanwhile, a major pre-strip operation has accelerated at the Arzu South pit at Kiziltepe, with the expectation of ore production to recommence from this pit in early 2025.”

At 1116 BST, shares in Ariana Resources were down 1.07% at 2.28p.

Reporting by Josh White for Sharecast.com.