Ariana Resources (LON:AAU) has successfully raised £1.16 million via a placing for its exploration and development projects and possible acquisitions.
Ariana placed 24.5 million shares at a price of 4.75 pence, which nearly equals the current share price of 5 pence.
The company said it was pleased with the support received for the placing, which “underpins the investment community's understanding of the significant value accretion potential of the company”.
“These funds provide the company with the ability to move quickly on additional assets which meet our investment criteria, as we build the Company towards being a mid-tier multi-project gold exploration and development company focussed on Turkey, an emerging globally significant gold destination,” said managing director of Ariana Resources Kerim Sener.
The placing shares will represent 9.79% of the enlarged issued ordinary share capital.
As a result of the placing, chairman Michael Spriggs increased his stake in the company to 0.28 percent, non-executive director and company secretary Michael de Villiers upped his shareholding to 0.93 percent and non-executive director and chief financial officer William Payne increased his stake to 0.18 percent. Spriggs and de Villiers each took 100,000 shares and Payne took 102,632.
Just less than a month ago, Ariana secured up to £5 million via a standby equity distribution agreement (SEDA) with Yorkville Advisors LLC.
It can drawdown new capital from the facility at any time over the SEDA’s three year life span, by issuing new shares to one of Yorkville’s investment funds, YA Global Master SPV.
Ariana then said that the deal enhanced its access to new capital which will help with significant project and investment decisions in the medium term.
Ariana’s priority project is the Red Rabbit joint venture in Turkey. It is the centre-piece of Ariana’s growth strategy and brings together the firm’s Kiziltepe prospect with Proccea’s Tavsan gold area.
Together the two have a resource of 450,000 ounces of gold and gold equivalent, though the target is to take that figure to at least 500,000 ounces. From that they hope to produce around 30,000 ounces per annum over a five year period.