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Ariana Resources PLC (LSE:AAU) has announced that Pontid, which owns the Salinbas project in Turkey, has merged with the Zenit consortium through an all-share transaction.
Previously, Ariana held a 23.5% stake in both Zenit and Pontid via its wholly-owned subsidiary, Galata Mineral. Following the merger, Ariana’s projects in Turkey, including Kiziltepe, Tavsan, and Salinbas, are now directly managed through Zenit, in which Ariana maintains a 23.5% interest in the enlarged entity.
Gold and silver production from Kiziltepe and Tavsan continues as planned, with the company reporting 8,500 ounces of gold and 66,300 ounces of silver produced up to the end of June.
Kerim Sener, Managing Director of Ariana Resources, commented on the completion of the merger, stating: "This marks the conclusion of a process that began in 2021, following our partial divestment in Turkey to Ozaltin Holding and the subsequent restructuring of our interests in Zenit Madencilik with Proccea Construction."
Sener explained that due to differing funding structures and requirements between Zenit and Pontid, the planned merger was initially postponed until the Tavsan mine’s construction reached an advanced stage. Significant progress has since been made at Tavsan, which is held by Zenit, as well as at the Salinbas asset held by Pontid.
With these advancements, it was deemed the appropriate time to finalize the merger as initially outlined in the Shareholders Agreement. This move simplifies Ariana’s holdings in Turkey and supports preparations for the planned ASX listing later in the year.
In the meantime, production at Kiziltepe and Tavsan remains on track, with over US$20 million in revenue recorded. Trucking operations between Tavsan and Kiziltepe have increased to 50 trucks per day. Additionally, a major pre-stripping operation is underway at the Arzu South pit at Kiziltepe, with ore production anticipated to resume from this pit in early 2025.
