Ariana Resources (ASX:AA2) has entered a binding definitive agreement with Xinhai Mining Services for an equity investment and to conduct metallurgical sampling and testwork at the Dokwe Gold Project in Zimbabwe, streamlining progress towards a Definitive Feasibility Study (DFS).
Xinhai will make a $8 million equity investment in Ariana through CHESS depository interests (CDIs) at a price of $0.30 per CDI including a $500,000 signing fee payment, which was paid on signing of the term sheet.
The mining services company will provide technical services in relation to the metallurgical sampling and testwork campaign for $1 million, ahead of the DFS.
Xinhai will be granted up to 18.33 million options to acquire CDIs, conducted on a basis of one option per two CDIs, with each option holding an exercise price of $0.50 per CDI and exercisable until 31 December 2027.
The Ariana board will gain one member from Xinhai on satisfaction of the agreement.
Ariana Managing Director Kerim Sener says the company is pleased to have been able to fasttrack this agreement with Xinhai just two weeks after the term sheet completion.
“This sets the scene for our positive relationship and understanding with Xinhai and bodes well for our interactions going forward on the advancement of the Dowke Gold Project through its Feasibility program,” Sener says.
Ariana is a mineral explorer, developer and producer focused on creating value for shareholders through its interests in active mining projects and investments in exploration companies.
Write to Maddison Elliott at Mining.com.au
Images: Ariana Resources
