Shares in Ariana Resources, the Australian and London-listed mining junior developing the Dokwe gold project in Zimbabwe, climbed 5 percent on Tuesday after the company signed a funding term sheet that brings in a major Chinese partner and injects fresh capital into the asset.
The stock rose to 1.61 pence following confirmation that Hongkong Xinhai Mining Services, a subsidiary of Shandong Xinhai Mining Technology and Equipment, will invest eight million Australian dollars through Ariana’s Australian depositary interests at 30 cents each. The agreement includes an upfront A$500,000 signing fee.
Chinese Capital, Technical Muscle
Beyond the equity injection, Xinhai will bankroll an A$1 million metallurgical sampling and testwork program and will complete a definitive feasibility study valued at up to A$2 million. Both will be settled in shares at the same issue price.
Related Stories
The feasibility study will provide the detailed technical and financial foundation required to determine whether Dokwe can move into full project development.
Under the term sheet, Xinhai will also receive up to 18.3 million options on a one-for-two basis, exercisable at 50 cents until the end of 2027. Definitive agreements are expected by 31 January, after which the Chinese partner will gain the right to nominate a director to Ariana’s board.
A follow-on placing of up to A$2 million under the same terms may be arranged through Shaw and Partners.
Accelerating Zimbabwe’s Next Gold Development
Ariana managing director Kerim Sener said the deal validates the quality of the Dokwe orebody and will accelerate the company’s route to production. Xinhai chairman Zhang Yunlong said the partnership demonstrates the Chinese group’s long-term interest in developing mineral assets in emerging markets.
If finalized, the agreement positions China as a key player in bringing the Dokwe gold project to life, while giving Ariana shareholders a clearer path toward unlocking Zimbabwe’s next significant gold mine.
Leave Comments