How Ariana’s A$11M Deal with Xinhai Could Transform Dokwe Gold Project

Strategic Partnership Accelerates Dokwe Development

Ariana Resources plc, a dual-listed mineral exploration and development company, has formalised a binding Definitive Agreement with Hongkong Xinhai Mining Services Ltd., securing up to A$11 million in funding and technical support for its flagship Dokwe Gold Project in Zimbabwe. This partnership represents a pivotal step in advancing the project from exploration towards production readiness.

The initial tranche involves an immediate A$8 million equity injection, with Xinhai acquiring 26.7 million CHESS Depositary Interests (CDIs) at A$0.30 each, representing just over 10% of Ariana’s issued capital post-transaction. This capital boost will provide Ariana with essential working capital to progress project activities and general operations.

Technical Collaboration and Feasibility Focus

Beyond the equity investment, Xinhai will deliver specialised metallurgical sampling and testwork services valued at A$1 million, followed by a Definitive Feasibility Study (DFS) budgeted up to A$2 million. Both service tranches will be remunerated through additional CDIs, subject to shareholder approvals. This technical collaboration leverages Xinhai’s extensive expertise in mining engineering and metallurgical processing, underscoring the strategic nature of the alliance.

Importantly, Xinhai’s involvement is not limited to funding and services; the agreement grants them options to acquire further CDIs at an exercise price of A$0.50 each, exercisable until the end of 2027. This option structure aligns incentives and provides potential upside participation as the Dokwe project advances.

Governance and Market Implications

As part of the deal, Xinhai will nominate a director to Ariana’s board upon completion of the first investment tranche, with John Zhang named as the initial nominee. This board representation signals a deepening partnership and offers Xinhai a direct voice in strategic decisions.

The transaction also includes management and success fees payable to corporate advisers, reflecting standard market practice for capital raises of this scale. Ariana’s management expressed optimism about the swift finalisation of the agreement and the positive outlook it sets for the Dokwe project’s future.

With Xinhai’s proven track record in Zimbabwe and global mining projects, their involvement is likely to enhance operational capabilities and investor confidence. The deal’s structure, combining capital, technical services, and governance participation, is a comprehensive approach to de-risking and advancing the project.