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Ariana Resources sells Kiziltepe stake for US$3.3M
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Ariana Resources sells Kiziltepe stake for US$3.3M

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  • Ariana Resources sold its 9.9% interest in the Kiziltepe Sector to Proccea Construction Co. for US$3.7 million in gross cash.
  • The transaction concluded commercial operations and brought proforma cash to $39 million as of July 31.
  • Management aims to direct the funds towards advancing its definitive feasibility study at the Dokwe Gold Project in Zimbabwe.

Ariana Resources (ASX:AA2) sold its 9.9% interest in the Kiziltepe Sector to Proccea Construction Co. for US$3.3 million net of local taxes.

The divestment follows the formal conclusion of commercial operations at the project site.

"This agreement with Proccea marks the successful conclusion of Ariana's involvement in the Kiziltepe Mine, which we progressed from a greenfields exploration project into a profitable one," stated Ariana Resources Managing Director Dr. Kerim Sener.

The agreement includes US$0.8 million received from Zenit Madencilik San. ve Tic. A.Ş. to fully settle an outstanding intercompany debt.

The company stated that the transaction provides additional non-dilutionary funding as it progresses its definitive feasibility study at the Dokwe Gold Project.

Following the announcement, the Ariana Resources share price was unchanged at $0.28.

The company maintains a 9.9% interest and a board seat in Zenit Madencilik San. ve Tic. A.Ş., which operates the Tavşan Mine and Salinbas Project.

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