Ariana Resources PLC (AIM:AAU) has arranged US$5 million of financing, with an initial US$2 million drawn down, to fund a feasibility study at the Dokwe gold project in Zimbabwe.
Riverfort Capital is providing the loan, which Ariana can utilise fully over a period of four years.
Riverfort has also agreed to invest between A$350-500,000 in equity when Ariana dual lists on the Australian Stock Exchange.
Kerim Sener, Arinana’s managing director said that the funding is intended to limit dilution and forms a key part of our strategy in the lead-up to our planned ASX IPO.
He added that Ariana intends to repay the funds advanced under the facility in cash primarily from cashflow generated from its business operations in future years.
"Having access to this capital enables the company immediately to advance the Dokwe Project into its planned Feasibility Study programme, which will initially include additional exploration of the project to prove up additional resource upside. “