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Publish Date : 15-Apr-2013

Arian Resources Corp. has entered into an option and investment agreement with its wholly owned subsidiary (JAB Resources SHPK) and Sinomine International Exploration (Hong Kong) Holding Co. Ltd. dated as of April 11, 2013. Pursuant to the terms of the option agreement, Sinomine has the right to earn up to a 60-per-cent equity interest in JAB, which has applied for a gold exploration permit in respect of the Kacinar gold project located in Albania.

The option agreement

The option agreement provides, among other things, that Sinomine may earn up to a 60-per-cent equity interest in JAB by incurring a total of $6-million in exploration and development expenditures in relation to the project on the following schedule:
$1-million of expenditures within one year of closing in order to acquire a 10-per-cent interest in JAB;
An additional $2-million of expenditures within two years of closing in order to acquire an additional 20-per-cent interest in JAB;
An additional $3-million of expenditures within three years of closing for an additional 30-per-cent interest in JAB; Sinomine will also act as operator of the project.

At closing, three of Arian's six directors will resign from the board of directors and two nominees of Sinomine will be appointed to the board for a total of five directors. In addition, it is expected that one of Sinomine's board nominees will be appointed president of Arian. Zahir Dhanani will resign as president, but will remain as chief executive officer and chairman of the board.

Closing is subject to the approval of the TSX Venture Exchange, satisfactory due diligence conducted by Sinomine on Arian and the project, and Arian obtaining the licence from the Republic of Albania (as discussed as follows).

Mr. Dhanani, president and chief executive officer of Arian, commented: "Arian is delighted to be forming a strategic partnership with Sinomine International Exploration, a leading mineral exploration company that has made a major financial commitment to advance Arian's flagship Kacinar project. Sinomine is renowned for strong technical staff, and its expertise in exploration and development of mineral properties. We are confident that this strategic partnership will provide supreme value to Arian's shareholders, and will be the start of a long-term partnership that will continue to expand in Albania and the Balkan region."

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