Ariana Resources plc : AGM STATEMENT AND RESULT...

Ariana Resources plc : AGM STATEMENT AND RESULT OF AGM

28 June 2013
AIM: AAU

AGM STATEMENT AND RESULT OF AGM

Ariana Resources plc ("Ariana" or "the Company"), the gold exploration and development company focused on Turkey, confirms that all of the resolutions put to shareholders at the Company's Annual General Meeting held today were duly passed.  

The Chairman, Michael Spriggs, made the following comments at today's meeting:

"Today we begin the next phase of the Company's development: the transformation from explorer to producer.  Despite the negative sentiment toward the mining sector and uncertain global market conditions, we have remained resolutely focused on this objective.  

"The Red Rabbit Project feasibility study is now complete.  The Environmental Impact Assessment ('EIA') approval process is underway and high-priority land acquisitions for the mine are almost concluded.  These actions have substantially de-risked our primary asset and helped establish the foundations for our mine.

"Recent announcements on the Red Rabbit project and the increase in our global resource base to 1.5 million ounces ('Moz'), have not produced the share price traction expected.  Current market conditions are extremely challenging, even for explorers relatively near production.  Against this backdrop and with an on-going need for capital, we have recently taken the opportunity to reinforce our balance sheet with a substantial capital placing.  

"We accept concerns that many shareholders have been diluted in this process, including ourselves as directors, but our priority has been to ensure the Company remains fully operational as we progress to production and to add value in the long term.  Any delay or uncertainty around financing would have been damaging to our business.  Our strategy has now provided the finance needed to take us into the construction phase of the project.  

"As with any mining project there are risks ahead.  Several changes in government regulations have caused delays to our project in the past.  Examples are the forestry permits for the plant site, waste rock dump and tailings dam.  Applications for these permits can only be made once the EIA approval process is complete, and decisions on these are still linked to the Prime Ministerial Office.  

"Discussions with banks and other financial institutions are underway for project specific funding, which we aim to secure primarily via debt at the JV company level.  Beyond the remaining equity contribution from Proccea Construction, the JV company will require approximately US$25 million of additional funding to satisfy the capital expenditure of the project.  Discussions with a number of banks have been positive and the JV company is confident that finance will be forthcoming.  We are fortunate that our JV partner and shareholder, Proccea Construction, shares our resolve to press ahead with transforming the Company in to a gold producer.  This is a sentiment echoed by our major shareholders.

"Today we present Ariana as a near-term development play targeting further discoveries and resource growth.  The Turkey-wide exploration database licensed from Newmont is already being used to target new discoveries.  

"Your Company is now exceptionally well placed to enhance value.  A testament to this has been our ability to secure financial backing, raising over £2.4 million in the past six months, a period in which many other junior companies have failed to raise finance or have adopted a survival strategy.  

"We have faced a clear choice between pressing ahead with developing our assets or standing still and allowing the value of our assets to be eroded over time.  We have chosen to press ahead to achieve our goal, irrespective of market sentiment.  The prize of becoming a producer is too great and therefore our focus will remain resolutely on this goal as we head into the final furlong."

Contacts:

Ariana Resources plcTel: +44 (0) 20 7407 3616
Michael Spriggs, Chairman
Kerim Sener, Managing Director
Beaumont Cornish LimitedTel: +44 (0) 20 7628 3396
Roland Cornish / Felicity Geidt
Beaufort International Associates LimitedTel: +44 (0) 20 7382 8387
Chris Rourke / Guy Wheatley
Loeb Aron & Company Ltd.Tel: +44 (0) 20 7628 1128
Frank Lucas/ John Beresford-Peirse
St Brides Media & Finance LtdTel: +44 (0) 20 7236 1177
Lottie Brocklehurst / Susie Geliher

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 is fully funding all exploration work on the JV properties, while Ariana owns 49% and is the operator.

The Company's flagship assets are its Sindirgi 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 of the Company stands at 448,000 ounces of gold equivalent.  

Ariana also has a strategic investment in Tigris Resources Limited (www.tigrisresources.com), a private Jersey-based exploration company, which is focused on the exploration of copper and gold deposits in south-eastern Turkey.  Ariana retains 11.5% of Tigris Resources Limited.  

Beaufort International Associates 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



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Source: Ariana Resources plc via Thomson Reuters ONE
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