Ariana Resources PLC (AIM:AAU, ASX:AA2) MD Kerim Sener talked with Proactive about the company’s recent dual listing on the ASX and its strategic focus on the Dokwe gold project in Zimbabwe.
Sener explained that the ASX listing comes at a time of rising gold prices and growing investor interest in the sector. He said, “The timing, as it turned out, is perfect because we're into another very significant rise in the gold price.” The listing gives the company exposure to a new pool of Australian investors who are already familiar with African exploration and development opportunities.
Sener said the majority of the A$11.00 million raised through the listing will go towards progressing feasibility work at Dokwe. This includes a significant drilling program across Dokwe North and Dokwe Central, targeting both resource conversion and extension. Around 3,000m of drilling is also planned for a new arsenic-gold anomaly identified northeast of Dokwe North.
The ASX listing complements Ariana’s existing AIM listing and introduces added flexibility for investors, allowing conversion between ordinary shares and CDIs. Sener added that the listing opens access to capital from both London and Australia.
Looking ahead, Ariana expects to release a series of updates from Zimbabwe, starting with drilling activity and progressing with the broader feasibility study.
Proactive: Hello, you're watching Proactive. I'm joined by Ariana Resources PLC CEO Kerim Sener. Kerim, very good to speak with you this morning. What does the ASX listing mean for Ariana and why is now the right time to proceed with it?
Kerim Sener: Good morning Stephen. Yes, very happy to join you. The ASX listing was obviously something that we were working on for some time. And the timing, as it turned out, is perfect because we're into another very significant rise in the gold price at this particular point in time. There's a lot of investor interest in the sector. The focus that we now have on our African interests — Dokwe in Zimbabwe. We've just come through Africa Down Under in Perth at the back end of last week. That was a very worthwhile conference to attend as a company and really showcases the connection that Australian investors and the wider investment community here has with Africa. So having the exposure to a new pool of investors, through the ASX, is certainly very valuable as we come to develop an asset like Dokwe.
Proactive: How do you see the ASX listing benefiting Dokwe specifically, Kerim?
Kerim Sener: Well, the Australian investors, going back some time, have been exposed to African exploration and development opportunities. Australian explorers have been very successful operating through West Africa, East Africa, and indeed into Southern Africa. Back in the 1990s, there were a number of Australian explorers that were very successful in Zimbabwe, and they've left a very positive legacy in the country. There's positive memory from those investors and those pools of capital. There are, obviously, from the Zimbabwean diaspora, a number of investors over here that we've been able to liaise with, and that's significant as well. There's a real understanding of Zimbabwean investment opportunities, particularly in the gold space.
Proactive: You raised the A$11 million as part of the dual listing process. How will these funds be deployed?
Kerim Sener: So the lion's share of the funds will be applied to the development of the Dokwe asset as we progress that through the feasibility. We've already commenced the feasibility work. Some aspects of that we’ve already been able to announce to the market — the latest mineral resource estimate, the work that we've undertaken with Whittle Consulting among others. There'll be further updates on that front in due course.
We're about to start a drilling program in the not-too-distant future. We've been going out to tender for the drilling contract — both RC and diamond — and we're planning to undertake a significant drilling program across both Dokwe North and Dokwe Central. We've allocated a significant proportion of the budget to that drilling program. It’s not only to help firm up those parts of the resource that are currently inferred and not yet converted to reserve, but also to undertake some extensional drilling around Dokwe North — particularly the new target that we've identified, the arsenic-gold anomaly just to the northeast. We've allocated about 3,000m of drilling into that area. Also in Dokwe Central, we plan to undertake extensional drilling along the East-West structure that carries the mineralisation. We’ll also drill for metallurgical test work purposes.
Proactive: Kerim, how does the ASX listing change the dynamic between your Australian and UK investor bases?
Kerim Sener: I don't think it changes the dynamic at all — in fact, it's an advantage in many ways. There are a number of existing Australian-based investors that were already invested in the Ariana AIM stock. So it introduces a degree of flexibility because they now have the capability of converting to CDIs — CHESS Depository Interests — and that is fully fungible both ways. Investors can go from ordinary shares into CDIs and vice versa. It's a very simple process. So all it really does is open up — and keep open — two pools of potential capital: London and Australia.
Proactive: And the next key milestones for Ariana?
Kerim Sener: All eyes should be focused on Zimbabwe at the present time. There’ll be a lot of news coming out on the Dokwe project in the weeks and months ahead as we continue to progress the feasibility study, kicking off with the drilling program.
Proactive: Kerim, I hope you'll keep us updated with progress on that. Thank you very much for taking the time today.