Alara Resources Limited enters into joint venture with Bayan Mining LLC
The agreement comes on the heels of the Saudi Arabian Licensing and Permits Department of the Deputy Minister for Mineral Resources' (DMMR), confirming that Bayan Mining's application license to the Ash Shizm mining site had been accepted, that Bayan had paid the required fees, and that the office was now going through the required steps to grant them an exploration license.
The agreement between Alara and Bayan is a joint venture in which they will study, develop and exploit mining opportunities at the Ash Shizm site. Alara will provide onshore and offshore technical and management services, as well as be responsible for the day-to-day operations. The economic interests of the venture will be split with 60 percent going to Alara and 40 percent to Bayan.
"Alara enjoys a trusted working relationship with Bayan and we welcome the opportunity to extend this relationship into a joint venture agreement," CEO Justin Richard said. "The agreement provides for Alara and Bayan to work together on both: 1) the highly sought after Ash Shizm site, and 2) other mining projects in Saudi Arabia, which will be advised in due course."