Ariana Resources PLC has agreed to an all-share merger with Rockover Holdings and dual-list the new enlarged company in London and on the Australian Securities Exchange.
Currently, Ariana has a 2.1% stake in Rockover, which owns 100% of the 1.3Moz Dokwe gold project in Zimbabwe.
Following the merger, Ariana shareholders will own around 62.5% of the enlarged company with Rockover shareholders having the remainder.
On completion, the company will still be known as Ariana Resources.
Kerim Sener, Ariana’s managing director, commented he was thrilled by the deal which adds an opportunity to acquire a major new gold development project and expands the miner beyond its well-established Turkish operations.
“The planned addition of the c.1.3Moz Dokwe gold project to our portfolio as a wholly-owned asset marks a substantial step toward our stated aim of establishing a global resource base of approximately 5Moz by 2025*,” he added.
“This transaction, based on a substantially derisked, feasibility stage project, which contains >95% of its JORC Compliant Mineral Resources in the Measured and Indicated categories aligns closely with our strategic objectives.
“Furthermore, the acquisition metrics of this project are very similar to our historic discovery cost, demonstrating that Dokwe represents an excellent value proposition.
“Based on a Pre-Feasibility Study completed for Dokwe in 2022, we anticipate advancing the Dokwe project towards production within the next three years, at a proposed annual production rate of 60,000oz increasing to potentially 100,000oz of gold over approximately ten years based on current Resources and Reserves.
“Our confidence in this project has developed in parallel with the positive jurisdictional improvements witnessed in Zimbabwe since late 2017, particularly the dollarisation of their economy, support of a government which recognises the value of its mining industry (accounting for 12% of a GDP of c.US$30 billion) and which encourages foreign investment in the sector for the benefit of its people.”
A Pre-Feasibility Study (2022) on the Reserves at Dokwe based on a mine life of 13 years generated a post-tax NPV10 of US$72 million and an IRR of 25% at a gold price of US$1,650/oz; though that economic model is currently being revised said the statement.
Source: Prospective Investor
