Ariana Resources increases stake in Venus ahead of IPO

Gold explorer and developer Ariana Resources announced on Tuesday that it will increase its stake in Venus Minerals, ahead of the latter's planned listing on the London Stock Exchange.

The AIM-traded company’s current shareholding in Venus stood at 41%, but the conversion of an existing loan worth £0.5m would boost that to 56%.

An additional loan of £0.2m was also expected to convert on the same terms, bringing Ariana's stake in Venus to 58%.

Venus is currently undergoing a capital restructure in preparation for its initial public offering (IPO), and to complete the Ariana share issue.

The additional funding provided by Ariana would help support Venus' growth plans, as it looked to expand its portfolio of gold exploration assets.

Several drill-ready targets had been identified across the Venus portfolio, including the newly-acquired Margi Prospect and the recently-discovered Troulli Prospect at the Mariner Project in eastern Cyprus.

The company believed the targets held “significant” potential for the discovery of high-grade gold deposits.

“We are pleased to be increasing our shareholding in Venus at this important time, as Venus advances on its plan to complete an IPO on the London Stock Exchange,” said Ariana managing director Kerim Sener.

“We are continually assessing market conditions, so that we achieve a listing of the company under optimal circumstances.

“In addition, various initiatives are being advanced by Venus in order to develop our projects in Cyprus as efficiently as possible.”

Dr Sener said recent copper discoveries, such as Troulli and at the newly-acquired Margi prospect, demonstrated the opportunities available in Cyprus for copper-gold deposits.

“As major shareholders in Venus, we are fully supportive of the team and wish them much success in their current endeavours.”

At 1620 GMT, shares in Ariana Resources were up 5.94% at 2.68p.

Reporting by Josh White for Sharecast.com.