02:00 Mon 08 Feb 2021
Ariana Resources PLC - PUBLICATION OF CIRCULAR
AIM: AAU
PUBLICATION OF CIRCULAR IN RESPECT OF CAPITAL REDUCTION AND UPDATE ON COMPLETION OF THE JOINT VENTURE
Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed exploration and development company operating in
Highlights:
· Circular published on the Ariana Resources website, under Circulars (accessible via: https://arianaresources.com/investors/circulars) and which has been posted to shareholders today.
· General Meeting to consider and, if thought fit, approve certain resolutions, which are proposed as special resolutions, to be convened on
· Completion of the Joint Venture with Ozaltin Holding A.S. and Proccea Construction Co. is progressing as planned, following the receipt of approval from the Competition Authority, as announced on
Dr.
"This timely circular is being distributed in advance of the completion of our new Joint Venture with Ozaltin and Proccea. The proposed General Meeting concerns a capital reorganisation which will enable the Company to pay a special dividend. Since receiving shareholder ratification of the joint venture agreements signed at the end of last year and the approval received from the Competition Authority in
"We have come a long way since the inception of the Company as a junior explorer some 15 years ago. Our strategy has enabled us to create a mechanism by which our shareholders will be rewarded through the distribution of dividends; a status which is quite unlike the majority of exploration and development companies globally. We are now focused on positioning the Company so that we can reward shareholders with a special dividend following completion of the JV and possibly additional dividends in the future. We trust that our shareholders will support this initiative and vote alongside the Board in supporting all of the proposed General Meeting resolutions."
Terms of the Proposed Capital Reduction
Under the current share structure, Ariana would need to generate profits in excess of
At the date of the Circular, the Company has in issue 1,075,677,943 Ordinary Shares of
The Directors believe the large level of these accumulated losses is detrimental to the interests of Shareholders and hence are looking at means of improving the Shareholders' position. For example, the suggested special dividend relating to the new joint venture arrangements with Ozaltin Holding A.S. (which were approved by the Company at a General Meeting held on
A Company is permitted to reduce its share capital by the Companies Act 2006 (Chapter 10). The reduction in its share capital can then be offset against the losses in retained earnings. The Directors accordingly propose to cancel the entire Share Premium Account as at the date of a Court Hearing and to cancel all of the Deferred Shares of
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Contacts:
Ariana Resources plc |
Tel: +44 (0) 20 7407 3616 |
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Beaumont Cornish Limited |
Tel: +44 (0) 20 7628 3396 |
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Panmure Gordon (UK) Limited |
Tel: +44 (0) 20 7886 2500 |
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Yellow Jersey PR Limited |
Tel: +44 (0) 7951 402 336 |
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Editors' Note:
About Ariana Resources (details as current and before completion of the JV):
Ariana is an AIM-listed mineral exploration and development company operating in
The Red Rabbit Project is comprised of the Company's flagship assets, the Kiziltepe and Tavsan gold projects, and is part of a 50:50 Joint Venture with Proccea Construction Co. Both assets are located in western
The 100% owned Salinbas Gold Project is located in north-eastern
Ariana is also earning-in to 50% of UK-registered Venus Minerals Ltd ("Venus") and has to date earned into an entitlement to 16%. Venus is focused on the exploration and development of copper-gold assets in
Panmure Gordon (UK) Limited is broker to the Company and Beaumont Cornish Limited is the Company's Nominated Adviser and Broker.
For further information on Ariana you are invited to visit the Company's website at www.arianaresources.com.
Ends.
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