Ariana Resources PLC on Monday said it secured significant financing from an institutional investor to progress two key strategic projects.
The London-based mineral exploration and development company with gold project interests in Africa and Europe entered into a strategic project financing agreement with Riverfort Global Opportunities PCC Ltd for up to $5.0 million.
From this, $2.0 million has already been advanced to Ariana primarily to initiate a feasibility study for its Dokwe gold project in Zimbabwe.
An equity investment of A$350,000, approximately $230,124, to A$500,000 will be put into a capital raise on the Australian Securities Exchange as part of plans for a dual-listing initial public offering.
The remaining funds available under the financing agreement will be accessible for four years, combined with any future capital arrangements, to provide funding flexibility as the Dowke project moves toward the construction phase.
Managing Director Kerim Sener said: ‘Significantly, this funding is intended to limit dilution and forms a key part of our strategy in the lead-up to our planned ASX IPO. Ariana intends to repay the funds advanced under the facility in cash, primarily from cashflow generated from its business operations in future years.
‘Having access to this capital enables the company immediately to advance the Dokwe project into its planned feasibility study programme, which will initially include additional exploration of the project to prove up additional resource upside. We are confident that the resource base of the Dokwe project is capable of further growth, and we are currently targeting a resource in excess of 2Moz of gold.’
Ariana Resources shares closed 11% lower at 2.44 pence each in London on Monday.
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