Tavsan Project Update

RNS Number : 2518U

Ariana Resources PLC

13 May 2008

 

13 May 2008

AIM / PLUS Markets: AAU

Definitive Agreement to Purchase Tavsan Project

Further to the announcement made on 4 April 2008, Ariana Resources plc ('Ariana' or 'the Company'), the gold exploration and development company focused on Turkey, is pleased to announce that it has entered into a definitive agreement relating to the purchase of certain exploration licenses ('Licences') in Turkey, collectively known as the Tavsan Project, from Odyssey Resources Limited (TSX-V: ODX) ('Odyssey').  

Completion of the transaction is subject to: 

• the requisite Turkish regulatory authorities recording Ariana's Turkish subsidiary as the registered owner of a 100 percent interest in the Licences; and 

• TSX Venture Exchange approval. 

As consideration for the transfer of the Licences, Ariana will pay Odyssey: 

(a) an initial payment of US$250,000 in cash to be held in escrow until the TSX Venture Exchange provides approval of the transaction; and 

(b) a further payment of US$250,000 in cash and 3,000,000 ordinary shares in the capital of Ariana (the 'Shares') at an issue price of 5p per Share. 

The cash and Shares relating to these latter payments will be paid at Closing and held in escrow until the transfers of the Licences are accepted by the Turkish General Directorate of Mining Affairs.  Closing is expected to occur on or before May 30, 2008.  The Shares will be subject to a 12 month hold period which will run from the date on which TSX Venture Exchange approval is received for the transaction.  

Contacts: 

Ariana Resources plc	Tel: [phone]
Michael Spriggs, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited	Tel: [phone]
Roland Cornish
Bankside Consultants	Tel: [phone]
Michael Padley / Louise Davis
Loeb Aron & Company Ltd	Tel: [phone]
Peter Freeman / Frank Lucas
City Capital Corporation Limited	Tel: [phone]
Charles Dampney

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 exploring a portfolio of prospective licences selected on the basis of its in-house remote-sensing database.

The Company's flagship asset is the Sindirgi Gold Project, which targets a series of prospects, within a prolific mineralised district in western Turkey. The project hosts over 45km of gold-silver bearing epithermal quartz veins.  This project is presently being assessed as to its economic merits.  

Loeb Aron & Company Ltd. and City Capital Corporation Limited 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.

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