Ariana Resources (LON:AAU) has completed a deal to acquire a number of prospective gold properties in western Turkey from KEFI Minerals.
The two AIM-listed firms agreed the initial terms of the deal back in March. The four exploration licences cover two main areas, known as Kizilcukur and Muratdag.
Ariana has made a nominal cash payment to KEFI, it will issue shares worth £50,000 and it will grant KEFI a 2 percent net smelter royalty for all future production from the licences.
"This is an important transaction for Ariana,” said Ariana managing director Dr Kerim Sener.
He added: “In particular, the synergies between these new projects and our flagship Red Rabbit Gold Project make this a particularly attractive strategic acquisition for the company.
“Development at Red Rabbit continues at pace ahead of production next year, and the consolidation of additional licences in the locality provides us with further resource uplift potential, which, in the longer term may provide the opportunity to significantly extend the mine life of Red Rabbit and improve the financial returns of the wider project area.”
The deal also makes a lot of sense for KEFI, who have a stated divestment strategy which will allow it to focus on projects that can be fast-tracked to production.
KEFI managing director Jeff Raynor said: "We continue to focus on developing projects in under-explored countries with excellent potential for discovery of major gold and copper mines.
“The decision to sell the assets in western Turkey is in line with our decision to focus on other projects, which are to be developed pending licence application approval."
KEFI is focusing it attentions on projects in Turkey and in Saudi Arabia.
In a separate statement KEFI also release their annual results, for the twelve months ended 31 December 2010.
During the year it has tested various prospects, taking a cost effective approach, which has allowed it to move onto other prospects with a greater chance of exploration success. So far all the field exploration work has been confined to Turkey.
Meanwhile in Saudi Arabia it is currently working through the licence application process. It said it is very keen to commence field explorations there.
"We continue to progress exploration programmes that aim to fast-track gold and copper discoveries and the eventual development of new mines,” Rayner added. “We are further progressing the licence application procedure in Saudi Arabia and will update shareholders with developments on this front in due course."
