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Mariana Resources secures £4mln of possible £6mln equity funding

The AIM quoted mining and exploration junior revealed plans to raise up to £6mln through a private placing, which will include a cornerstone subscription from an as yet unidentified ‘North American royalty company’.
Money, cash - represents the share placing proceeds which will be spent on the Hot Maden project in Turkey
The North American royalty company is investing around £3.4mln (US$5mln).

Mariana Resources Ltd (LON:MARL) told investors it has so far received backing for £4mln of a possible £6mln funding.

The AIM quoted mining and exploration junior revealed plans to issue up to 330mln new shares in the company through a private placing, which will include a cornerstone subscription from a new strategic investor.

New shares will be priced at 1.82p, the stock's closing price on Friday April 22.

An as yet unidentified ‘North American royalty company’ has agreed to invest around £3.4mln (US$5mln), Mariana said in a statement.

Investors in the placing will also receive warrants - one warrant for every two new shares - which will allow the holder to purchase additional shares at a price of 2.5p each over a two year period.

Glen Parsons, Mariana chief executive, said: "Mariana is continuing to attract a broader and diverse investor base with its attractive portfolio of assets.

“This fundraising has been subscribed for by a number of supportive influential investors and institutions globally, including a significant investment from a strategic North American royalty company. 

“We view these investments in Mariana as a great vote of confidence in the asset and our team as a whole and we believe this will assist in raising the company's Canadian and global profile.”

Parsons highlighted that the new funds will be mainly used to advance the Hot Maden copper-gold project through to a preliminary economic assessment and ultimately feasibility.

“The placement and longer term funding allows Mariana to plan ahead constructively, while avoiding the need to fall back on short term funding financing decisions," he added.

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