Turkey focused miner Ariana Resources said it had entered into a non-binding memorandum of understanding with a 'major' Turkish construction and engineering company.

The agreement proposed a series of asset sales to the partner including 17% of the Salinbas project for $5m and jointly with Proccea, 53% of Zenit for $50m.

The partner would then inject $8m of equity into the Salinbas project via an earn-in arrangement and organise the bank finance to enable the project to be brought into production.

The proposed joint venture would be subject to due diligence, entering into binding agreements and shareholder approval, no later than the end of February.

'This MoU represents a major development in the evolution of the company, once the definitive agreements are implemented,' chief executive Kerim Sener said.

'It recognises the considerable value of our assets and the track-record and success of our exploration and development team.'

'In particular, the contemplated joint partnership between Ariana, Proccea and the new partner, will create a formidable exploration, development and production group focused on Turkey.'

At 2:01pm: (LON:AAU) Ariana Resources PLC share price was +0.45p at 2.55p