Shares of Ariana Resources plc (LON: AAU) surged 13.4% after announcing the closing of a joint venture deal in Turkey that will earn the company up to $37.75 million in cash consideration before taxes.
The gold mining and exploration first announced the joint venture deal in December 2020 where Ozaltin Holding AS is set to acquire 53% of Zenit Madencilik Sanayi ve Ticaret AS, a joint venture owned 50:50 by Ariana and Proccea Construction.
The two companies will each retain 23.5% shareholding in the joint venture, while Ozaltin will become the majority shareholder with a 53% stake.
Kerim Sener, Ariana’s Managing Director, said:
“This joint venture represents the most significant development in the company's history, and we look forward to building on our enhanced position while continuing to deliver on our objective to provide significant value for shareholders. This joint venture validates our successful strategy of simultaneously creating value and mitigating business risks.”
Today’s rally by Ariana shares validates the move we saw yesterday where the 4.32p support level held limiting the stock’s losses. Today’s rally indicates that the level will hold for now and could provide excellent trade opportunities to bullish traders looking to capitalise on the next uptrend.*
Ozaltin is set to inject $8 million into the joint venture to fund a feasibility study, an environmental impact assessment, and additional permits at the Salinbas project. The joint venture now has $25 million in cash and will use the money to fund further exploration and development projects in the region.
The company also revealed that the construction of the processing plant at the Kiziltepe project would be completed in the second half of this year.
Ariana is also accumulating a significant stake in Venus Minerals and is on track to attain 50% ownership of the company by the end of 2021 as it continues to explore and develop resources within Cyprus.
Ariana Resources share price.
Ariana Resources shares surged 13.38% to trade at 5p after rising from Tuesday’s closing price of 4.41p.