Ariana strikes funding deal to push Zimbabwe gold project forward

Ariana Resources PLC has agreed a funding term sheet with a Chinese mining group that would inject A$8 million into its wholly-owned Dokwe gold project in Zimbabwe and move the operation a step closer to production. The company said Hongkong Xinhai Mining Services, part of Shandong Xinhai Mining Technology & Equipment, will make the investment through Ariana’s Australian-listed depositary interests at A$0.30 each. The term sheet includes a A$500,000 signing fee, which is paid immediately.

Alongside the funding, Xinhai will run a detailed metallurgical sampling and testwork programme for A$1 million and will complete a definitive feasibility study for up to A$2 million, both paid in shares at the same issue price. A feasibility study is the technical and financial assessment that tests whether a mine can be built and operated commercially. Xinhai is also set to receive up to 18.3 million options, issued on the basis of one option for every two shares it subscribes for. These give the right to buy shares at A$0.50 each until the end of 2027.

Ariana said it expects definitive agreements to be signed by 31 January next year. Once completed, Xinhai will be able to appoint a member to the board. A separate follow-on placing, potentially raising up to A$2 million on the same terms, may be conducted by Shaw and Partners.