Ariana Resources plc (LON: AAU) have updated shareholders on Monday about a new acquisition in Cyprus which has been formalized.
Ariana Resources is an AIM-listed gold exploration and development company with joint venture gold mining operations in Turkey, the largest gold producing country in Europe. Ongoing exploration and development is supported by a profitable, low operating cost gold mine in western Turkey.
Shares of Ariana Resouces currently trade at 2p (+0.93%). 2/12/19 14:21BST.
Ariana have seen a mixed financial 2019, as the firm reported a strong second quarter after success at its Kiziltepe Mine back in July.
Today, shareholders can be pleased about the new acquisition as Ariana have shown an active interest to diversify and expand in an ever competitive market.
London-based Ariana has signed an earn-in to buy the interest in Venus Minerals Ltd, which holds the Klirou and Kokkinoyia gold prospects. It intends to develop them together as the Magellan project.
It has already spent €600,000 on taking a 6% holding in the company, and has committed to a further €2.4 million of expenditure over the next three years.
Klirou has a historical resource of 4.3 million tonnes of ore at 0.5% copper and 0.8% zinc plus unquantified gold, while Kokkinoyia holds 5.2 million tonnes at 0.7% copper and an unquantified amount of gold.
Ariana commented by saying that the resources at the mine are open in several directions, and there is significant potential for gold rich zones which may have been previously missed.
Ariana Managing Director Kerim Sener said: “We are exceptionally pleased to expand our interests within the Tethyan metallogenic belt and to do so in the operationally-friendly jurisdiction of Cyprus represents the fulfilment of a well elucidated long-term diversification strategy of the company.
“Cyprus holds a global reputation for high-quality copper deposits, which tend to occur in distinct clusters; many of which remain significantly underexplored. We are also pleased to be working alongside a first-rate in-country team, committed to the development of the Cypriot mining industry.”
“Ariana is making full use of its regional exploration and development expertise. After two years of careful due diligence and relationship building in Cyprus, Ariana is committed to the successful development of Venus Minerals,” Sener continued.
“We are also taking advantage of our geographic proximity to get maximum cost-time benefit from our existing team and infrastructure. In Venus, we now [have] what we believe to be an exceptional investment opportunity which we look forward to supporting for the benefit of all stakeholders.”
Big name competitors such as Fresnillo have seen their shares crash following production expectations slashed.