Ariana Resources PLC (AIM:AAU) has made a second investment via its wholly-owned subsidiary, the Asgard Metals Fund.
Asgard Metals Fund will take an interest in Pallas Resources Limited, a UK company with several large copper and gold licences in highly prolific mineral belts of Kazakhstan.
Up to 1.25mln shares in Pallas will be issued to Asgard following a strategic investment that also involves a consultancy agreement.
Under the consultancy agreement, the Ariana team will provide technical consulting services to Pallas' exploration efforts in Kazakhstan over a two-year period.
"Over the past decade, we have reviewed a number of Central Asian exploration opportunities,” said Dr Kerim Sener, managing director of Ariana Resources.
“We wanted to work in parallel with a first-class team and in Pallas we have found our match. Kazakhstan represents a jurisdiction which satisfies our criteria and one which has the distinct advantage of having implemented a new mining law modelled on that for Western Australia, a legislation with which we are very comfortable. Another advantage is our familiarity with the language, which will become even more straightforward for our Turkish team following the implementation of Latin script for Kazakh by 2025.”
With an extensive portfolio focused on gold and copper, encompassing over 800 square kilometres, Pallas is well-positioned across several of Kazakhstan's highly prolific mineral belts.
These areas are host to several multi-million ounce gold deposits, some of which are in production and under the ownership of western companies. The region is one of the few globally which retains the potential to make further greenfield discoveries of Tier 1 deposits.
"This investment exemplifies Ariana's expanded reach and strategic direction via the Asgard Metals Fund,” added Sener.
“We are actively pursuing opportunities throughout the Eastern Hemisphere, as we develop future growth opportunities for the company across new horizons. We now look forward to assisting Pallas in its development, ultimately towards an IPO. They have a great team, with which we share mutual characteristics, and we are keen to collaborate closely with them in the years ahead. We look forward to providing further updates in due course."