Ariana Resources has entered into a convertible loan agreement with Venus Minerals to enable the Apliki Project in Cyprus to move forward.
It will forward £500,000 through a convertible loan with a 10% coupon to give Venus breathing space to focus on its proposed listing on AIM.
"We are very pleased to be able to provide the funding for Venus to extend its option to invest in the Apliki Project in Cyprus,” said Kerim Sener, Ariana’s managing director.
"The Apliki Project will be advanced as a 50:50 joint venture with HAM whilst Venus maintains management control.
“It represents the most advanced copper mining asset in Cyprus with the capacity for at least ten years of mine life.”
Sener added: "We have recently announced a material update to the Mineral Resource Estimate for this project, which has shown an increase to 17Mt @ 0.26% to 0.69% copper.
"This, in turn, should represent a significant improvement to the potential project economics and hence warrants further work to support an improved valuation ahead of the proposed IPO of Venus.
"Venus will now focus on reflecting these and other material developments in the documentation being prepared for its AIM IPO, particularly with regard to the proposed capital structure. "