Risks and Rewards: Ariana’s ASX Listing and Debt Repayment Strategy Under Scrutiny

Strategic Dual Listing and Capital Raise

Ariana Resources plc, an established gold exploration and production company listed on the AIM Market of the London Stock Exchange, has announced a significant milestone with its proposed dual listing on the Australian Securities Exchange (ASX). The company is offering up to 53,571,429 CHESS Depositary Interests (CDIs) at an issue price of A$0.28 per CDI, aiming to raise up to A$15 million before costs.

This capital raising is designed to provide Ariana with the financial flexibility to accelerate exploration and development activities, particularly at its 100%-owned Dokwe Gold Project in Zimbabwe. The funds will also be used to partially repay the existing debt facility with RiverFort Global Opportunities PCC Limited, which has supported prior exploration efforts.

Focus on Dokwe Gold Project and Regional Assets

The Dokwe Gold Project stands as Ariana’s flagship asset, boasting a substantial in-pit JORC Mineral Resource Estimate of 22.9 million tonnes at 1.52 grams per tonne gold, equating to approximately 1.1 million ounces of gold. The project is advancing towards a Definitive Feasibility Study, with the capital raise expected to fund one year of full exploration operations, including drilling programs and environmental assessments.

Beyond Zimbabwe, Ariana holds a 23.5% interest in producing gold-silver mines in Türkiye, including the Kiziltepe and Tavşan Mines, which have demonstrated consistent production and revenue generation. The Tavşan Mine recently completed construction and is poised to commence gold production, further strengthening Ariana’s operational profile.

Additionally, the company maintains exploration interests in Kosovo through Western Tethyan Resources Limited and in Cyprus via Venus Minerals Limited, both of which offer promising mineral resource opportunities. Ariana’s strategic alliance with Newmont Mining Corporation further supports exploration activities in southeastern Europe.

Governance, Risk, and ESG Commitment

Ariana’s governance framework is robust, with a board comprising experienced industry professionals overseeing strategic direction and risk management. The company acknowledges the inherent risks associated with mining operations, including geopolitical, environmental, and operational challenges across its diverse jurisdictions.

Environmental, Social, and Governance (ESG) principles are integral to Ariana’s operations, with initiatives focused on community engagement, environmental stewardship, and sustainable development. The company emphasizes responsible mining practices and aims to maintain strong relationships with local stakeholders.

Offer Details and Market Implications

The public offer is open to eligible investors in Australia and select international jurisdictions, including New Zealand, Hong Kong, Switzerland, Singapore, and the United Kingdom. Shaw and Partners Limited has been appointed as lead manager, with Leeuwin Wealth Pty Ltd as co-manager. The offer is not underwritten, and the company reserves the right to close the offer early or extend it as necessary.

Upon completion, the CDIs will be quoted on the ASX, providing enhanced liquidity and access to a broader investor base. The dual listing is expected to facilitate better price discovery and reflect the value of Ariana’s assets more accurately in the Australian market.