Ariana expands in Turkey

16th Mar 2011 13:45

Gold explorer Ariana Resources is set to buy four exploration properties in western Turkey from Turkish group KEFI Minerals. The acquisition of one of these - the Kizilcukur project - is seen as a "strategically significant move" as it provides the group with an opportunity to create synergies with its Red Rabbit Gold Project ahead of scheduled production in 2012. Arian's target resource base for the Red Rabbit region is 1m oz of gold equivalent: "we are putting all the building blocks in place to achieve this in the medium term," says Ariana's managing director Kerim Sener."This proposed acquisition is an important step for Ariana, and one which will consolidate our position and exploration footprint in western Turkey, focusing primarily on the highly prospective Red Rabbit Gold Project and the surrounding area," says Sener.The group has signed a heads of agreement for the properties which will expire on 29 April. While no financial information is given regarding a nominal cash payment to KEFI, Ariana will issue ordinary shares equal to £50,000.