8 June 2015
AIM: AAU
STRATEGIC INVESTMENT STATUS GRANTED TO KIZILTEPE GOLD MINE
Ariana Resources plc ("Ariana" or "the Company"), the Anglo-Turkish gold exploration and development company is delighted to announce that its Kiziltepe Gold-Silver Mine ("Kiziltepe"), has been granted Strategic Investment status by the Turkish Government. Kiziltepe is part of the Red Rabbit Joint Venture in western Turkey with Proccea Construction Co.
Highlights:
- Strategic Investment status provides enhanced investment incentives and demonstrates continued support for the mine's development by the Turkish Government.
- Additional 50% reduction (90% total reduction) in corporation tax and exemptions from customs duties and VAT on components and equipment to be imported.
- Kiziltepe financial models to be revised to include latest incentives.
- Kiziltepe Mine fully funded and permitted ahead of construction start-up.
Michael de Villiers, Chairman, commented:
"We are delighted to have received Strategic Investment status following the recent approval of our forestry permits. These enhanced incentives demonstrate support for our mine development by the Turkish Government, ensuring improvements to the economics of Kiziltepe while encouraging new exploration. This is a win-win for the Company and for Turkey as new resources are discovered and mined."
Investment Incentives
During 2014, the Joint Venture company, Zenit Madencilik San. ve Tic A.S. ("Zenit"), applied to the General Directorate of Incentives and Foreign Investment at the Turkish Ministry of the Economy for the inclusion of the project as a Strategic Investment. In addition to existing incentives secured by the company (which includes an 80% reduction in corporation tax), classification as a Strategic Investment entails a total reduction of 90% in corporation tax up to a tax limit of 50% of the capital investment. The Company has now been given the status of a Strategic Investment and will be able to take advantage of strategic investment incentives made available by the Turkish Government. The Company will be revising its financial models to take account of these incentives for the Kiziltepe Mine accordingly.
The incentives secured include:
- Exemption from customs duty domestic and foreign machinery and equipment (100% exemption).
- 90% reduction in corporation tax up to a tax limit of 50% of the capital investment. This equates to corporation tax being paid at a rate of 2% in the early years of the operation, rather than the standard 20% rate.
- Social insurance contributions for all mine employees will be paid by the Turkish Government for 7 years.
- Interest repayment support on any Turkish Lira or foreign currency loan secured by the company.
- VAT exemption domestic and foreign machinery and equipment (100% exemption).
Contacts:
| Ariana Resources plc | Tel: +44 (0) 20 7407 3616 |
| Michael de Villiers, Chairman | |
| Kerim Sener, Managing Director | |
| Beaumont Cornish Limited | Tel: +44 (0) 20 7628 3396 |
| Roland Cornish / Felicity Geidt | |
| Beaufort Securities Limited | Tel: +44 (0) 20 7382 8300 |
| Saif Janjua | |
| Loeb Aron & Company Ltd. | Tel: +44 (0) 20 7628 1128 |
| John Beresford-Peirse / Dr. Frank Lucas | |
| St Brides Partners Ltd | Tel: +44 (0) 20 7236 1177 |
| Lottie Brocklehurst / Felicity Winkles | |
Editors' note:
About Ariana Resources:
Ariana is an exploration and development company focused on epithermal gold-silver and porphyry copper-gold deposits in Turkey. The Company is developing a portfolio of prospective licences selected on the basis of its in-house geological and remote-sensing database, on its own in western Turkey and in Joint Venture with Eldorado Gold Corporation in north-eastern Turkey. Eldorado owns 51% of this joint venture and are fully funding all exploration work on the JV properties, while Ariana owns 49%. The total resource inventory within this JV is 1.09 million ounces of gold.
The Company's flagship assets are its Kiziltepe and Tavsan gold projects which form the Red Rabbit Gold Project. Both contain a series of prospects, within two prolific mineralised districts in the Western Anatolian Volcanic and Extensional (WAVE) Province in western Turkey. This Province hosts the largest operating gold mines in Turkey and remains highly prospective for new porphyry and epithermal deposits. These core projects, which are separated by a distance of 75km, are presently being assessed as to their economic merits and now form part of a Joint Venture with Proccea Construction Co. The total resource inventory at the Red Rabbit Project stands at 475,000 ounces of gold equivalent.
Beaufort Securities Limited and Loeb Aron & Company Ltd. are joint brokers to the Company and Beaumont Cornish Limited is the Company's Nominated Adviser.
For further information on Ariana you are invited to visit the Company's website at www.arianaresources.com.
Ends