Ariana Resources raises funds for Turkey gold projects

20th June 2017 By: Megan van Wyngaardt - Creamer Media Contributing Editor Online

JOHANNESBURG (miningweekly.com) – Gold exploration company Ariana Resources has raised £1.87-million through the placement of 133.8-million ordinary shares and the subscription of 10.03-million new ordinary shares, at 1.30p apiece.

The Aim-listed company said it would use the proceeds to provide working capital support to its joint venture (JV) operating company, Zenit Madencilik – a 50:50 partnership between Ariana and Proccea Construction – prior to the miner’s Kiziltepe operation, in Turkey, achieving commercial production. 

The proceeds will also be directed toward the continued exploration and development of the company's portfolio of advanced assets in Turkey, including the Salinbas and Tavsan projects.

Operationally, the ramp-up to full production capacity at Kiziltepe remains on track and is expected to be concluded by the end of June, following which quarterly production reporting will start.

During the year ahead, the company further intends to trial mine and develop the resource at its Kizilcukur project; continue with exploration and scoping level work at the wholly-owned one-million-ounce Salinbas project and commission additional feasibility-related work at the JV-owned Tavsan project to accelerate the project towards development.