(MENAFN- ProactiveInvestors) Shares in () jumped as it announced AIM-listed peer Metal Tiger (LON: MTR) has taken a small stake and would collaborate on future exploration in Turkey.
Metal Tiger will invest £150000 in two tranches £75000 now and the rest when Ariana gets a forestry permit for its gold mine development at Kiziltepe.
Ariana’s hopes permission will come through soon as a new mining law in Turkey is shortly set to receive presidential sign-off.
The new legislation follows a spate of fatalities in mines in the country over the past twelve months which included the death of 301 miners at Soma in May the worst loss of life in Turkish mining history.
When it pays it second tranche Metal Tiger will also be granted warrants for a further 8.33mln shares exercisable at 1.8p per share over three years.
Permits allowing Kiziltepe could be operational by the fourth quarter of 2015 with an initial target of 20000 ounces of gold per year.
Kerim Sener Ariana’s managing director said: “The full amount of the investment when received is expected to provide Ariana with sufficient working capital for core company operating costs until Q4 2015.
"This visibility of forward funding is key to enabling management of the company to focus on development of our gold production plans at Kiziltepe; the furtherance of new exploration and development opportunities out of existing interests; and the generation of value in respect of our Joint Venture with Corporation and in particular the Salinbas/Ardala asset.”
If Ariana realises more than US$15mln for its 50% stake in Salinbas/Ardala the exercise price of Metal Tiger’s warrants rises to 2.7p.
Shares in Ariana rose 11% to 0.92p.
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