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Ariana Resources, a gold exploration and development company focused on Turkey, has conditionally raised £770,000 (before expenses) by way of a subscription for 85,555,556 ordinary shares of 0.1p each at a price of 0.9p per share.
Highlights:
– Lanstead Capital L.P. (“Lanstead”) has maintained its approx. 25% shareholding in the Company through the subscription of 21,111,111 ordinary shares.
– Significant support provided by Ariana directors, staff and individuals associated with the Company both in Turkey and internationally – approximately 20% of the funds raised from these sources.
– Funds raised will enable the acceleration of exploration activities on the wider Kiziltepe area of the Red Rabbit Gold Project in western Turkey – previous results have demonstrated the potential to increase current resources.
Dr. Kerim Sener, Managing Director, commented:
“We have advanced the Kiziltepe Sector of the Red Rabbit Gold Project though to pre-production, and following the grant of the final applicable permits, our Joint Venture partners, Proccea Construction, will progress with the building of the mine. With an initial project reaching maturity in the development curve, and revenue generation from Kiziltepe anticipated following the mine going into production, Ariana is now turning its attention to the wider Kiziltepe area. This is an area that has to date yielded highly encouraging exploration results.
“This recent exploration work at Kiziltepe, and the new exploration plan that we initiated in November 2013, has highlighted the potential for us to increase the current mineable resources at the Kiziltepe Sector over the next two years, focusing initially on existing exploration targets. This work is now our over-arching priority, as we look to enhance the overall economics of the Kiziltepe Sector, extend the mine life and thereby increase the attributable value of this asset.
“With this in mind, the funds raised will provide us with capital to complete a programme of airborne geophysics and drill-target definition in order to advance exploration and resource delineation. I would also like to note the significant support provided by my fellow directors, Ariana employees and numerous other individuals involved with the Company and project, both in Turkey and overseas. Their participation in this fundraising not only highlights all parties’ confidence in the quality of the project and the significant resource upside potential still achievable at Kiziltepe, but also underlines how aligned we are to the success of this project over the coming years.”
Use of Proceeds:
The funds will be used by the Company to advance exploration in the vicinity of the Company’s planned Kiziltepe mine in western Turkey and for general working capital. Following the approval of the Environmental Impact Assessment the Company is expecting to advance the permitting necessary for construction with its Joint Venture partners, Proccea Construction. Once permitting has been finalised, the Company expects construction to conclude within eight months of start-up.
While permitting and construction matters are being advanced, the Company has determined that the most efficient way to advance further regional and local scale exploration in the vicinity of the planned Kiziltepe mine will be to complete a programme of airborne geophysics and drill-target definition. It is the intention of the Company to apply part of the funds raised to delivering on these objectives. In addition, funds will be used for working capital and investment in the equity swap as set out below.
The Subscription:
The Company has conditionally raised £770,000 (before expenses) by way of Subscription. The 85,555,556 new ordinary shares of 0.1p each (“the Shares”) will rank pari passu with all existing ordinary shares and application will be made for the Shares to be admitted to trading on AIM (“Admission”). Of the subscription, Lanstead, an institutional investor, has subscribed for 21,111,111 new ordinary shares of 0.1p each (the “Lanstead Subscription Shares”) at 0.9p per share for an aggregate consideration of £190,000. Admission is expected to take place on or around 4 February 2014.
