Ariana Resources places 30m shares to fund drilling

Ariana Resources announced on Friday a placing of 29,616,666 new ordinary shares of 0.1p each in the company, at a price of 1.5p per share, in order to raise gross proceeds of around £0.45m before expenses.

The AIM-traded firm said the placing has been undertaken within the company's existing share authorities, and has been supported by both new and existing shareholders.

It said the net proceeds of the placing will be used to extend the current drilling programme and for developing new projects.

“The completion of this fundraising occurs at a significant moment in the development of the company, while it delivers on completion of the Kiziltepe Mine with its partners, Proccea Construction,” said managing director Dr Kerim Sener.

“We are particularly keen to extend the current drilling programme beyond the budgeted 4,000m given the number of new target areas we have defined in recent months.”

Sener said the extended programme will systematically test several of those additional areas at Kiziltepe and will also enable Ariana to drill other prospect areas as necessary.

“We would expect that this work will help to define an enhanced project with greater mine life and resource/reserve optionality.”

In addition, Ariana announced that three directors of the company - Michael de Villiers, Kerim Sener and William Payne - intend to subscribe for a total of 2,050,000 shares on the same terms for a further sum of £30,750 following the announcement of the placing.