Audrey Galawu- Assistant Editor
London-listed mineral exploration and development company Ariana Resources PLC announced this Wednesday the successful raising of GBP 1.1 million to support the development of its Dokwe gold project in Zimbabwe.
Ariana Resources managing director Kerim Sener expressed his enthusiasm about the development:
"This placing is designed to enable us to complete the initial technical work on the Dokwe gold project feasibility study to showcase a revised ore reserve and to establish the basis for further project development. We are excited to advance Dokwe through its feasibility study over the remainder of this year, as this represents the most significant development asset in our advanced portfolio."
The funds were raised through a combination of a placing, subscription, and retail offer. Ariana Resources managed to secure GBP 700,000 from the placing at 1.5 pence per share and an additional GBP 347,000 through a direct subscription at the same price.
Despite the 18% drop in share price, closing at 1.44 pence each in London on Wednesday, the company is optimistic about the future of the Dokwe project.
Ariana Resources also announced a retail offer to raise an additional GBP 300,000. The net proceeds from this fundraise will be utilized to provide working capital and to complete some desktop and fieldwork support for the ongoing feasibility study at the Dokwe project.
Analysts have said the funding injection is a testament to the potential of the Dokwe gold project and the confidence investors have in Ariana Resources' ability to deliver on its objectives in Zimbabwe.
The successful completion of the feasibility study could pave the way for further development and growth for the company in Africa.
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