Ariana Resources issues 56m shares to raise funds for projects

Ariana Resources, an AIM listed exploration and development company focused on epithermal gold-silver and porphyry copper-gold deposits in Turkey, has announced an oversubscribed placing of 56m new ordinary shares to raise gross proceeds of around £900,000 before expenses.

The shares of 0.1p each will be priced at of 1.6p each, conditional on admission to AIM.

The net proceeds will be used to advance projects outside of Kiziltepe as well as support ongoing working capital requirements of the group.

Managing Director Dr. Kerim Sener said: "We are pleased to be raising £900,000 at this important time in the evolution of the company. Following the recent acquisition of 100% of the 1m ounce Salinbas Project and the completion of a highly encouraging scoping study at Tavsan, the funds raised will be utilised to advance these projects in particular.

“Both projects require additional value additive work that it is important that we conduct during the winter months and immediately ahead of the exploration field season. Completing this work while Kiziltepe is in the process of entering production, will contribute significantly towards our strategy to enhance our production profile towards 50,000 oz gold per annum."

The share price fell 7.89% to 1.75p at 0953 GMT on Friday.