UK-based miner Ariana Resources Plc has secured a US$5,31 million strategic investment from Hongkong Xinhai Mining Services to fund metallurgical test work and complete a definitive feasibility study for its flagship Dokwe Gold Project in Zimbabwe.
The Dokwe project hosts over one million ounces of gold, with an in-ground resource valued at nearly US$4 billion at current prices.
The announcement comes shortly after Ariana began exploration drilling at Dokwe to expand and define its gold mineralisation.
Xinhai, part of Shandong Xinhai Mining Technology & Equipment Inc., paid a non-refundable signing fee of AU$500 000 (US$332 244) to Ariana. Both parties are now working to finalise binding documentation for the strategic investment.
“Subject to execution of the definitive agreements and satisfaction of other conditions precedent, Xinhai will make an investment worth up to AU$11 000 000 (US$7,3 million) into Ariana, whereby Ariana will issue an aggregate of up to 36 666 667 CHESS Depositary Interests in Ariana (CDIs) at AU$0,30 per CDI (the issue price),” it said.
This will be subject to Ariana shareholder approval (if required) and any other requirements of the Australian Stock Exchange (ASX) and Alternative Investment Market rules for Xinhai or its nominees.
CDIs are instruments that allow investors to trade shares of foreign-incorporated companies on the ASX, with a depositary holding the underlying shares on behalf of investors.
The planned investment will be made in three tranches.
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In the first tranche, Xinhai will invest AU$8 000 000 (US$5,31m) in cash into Ariana in exchange for 26 666 667 CDIs. This tranche is inclusive of a non-refundable AU$500 000 signing fee, which will be made by Xinhai to Ariana to confer exclusivity for the completion of the investment until January 2026.
The fee will form part of the first tranche of the investment once all investment conditions are satisfied, including execution of the definitive agreements.
“If the definitive agreements are not finalised and executed by 31 January 2026, then this signing fee shall be converted to CDIs at the issue price. On completion of the Tranche 1 investment, Xinhai will be entitled to nominate for appointment to the Ariana board one director, with the initial nominee being John Zhang,” Ariana said.
Under the second tranche, Xinhai will provide metallurgical sampling and testwork services based on a programme to be agreed upon for the Dokwe Project valued at AU$1 million (US$664 450,70) to Ariana in exchange for 3 333 333 CDIs issued by Ariana.
Under the third tranche, Xinhai will provide technical services based on a budget to be agreed but nominally valued up to AU$2 000 000 (US$1,32 million) to complete a definitive feasibility study for the Dokwe Project in exchange for up to 6 666 667 CDIs issued by Ariana.
“All funds received by Ariana pursuant to the investment will be utilised and allocated by Ariana for general working capital purposes in accordance with its operational and strategic requirements in its sole and absolute discretion,” Ariana said.
