29th Jan 2014 09:08
LONDON (Alliance News) - Ariana Resources PLC Wednesday said it has conditionally raised GBP770,000 before expenses, funds it will use to accelerate exploration on the wider Kiziltepe area of its Red Rabbit Gold Project in western Turkey.
The gold exploration and development company focused on Turkey said it had raised the money through a subscription offer of 85.6 million shares at 0.9 pence each.
It said its largest shareholder, Lanstead Capital LP had maintained its holding of about 25% by subscribing for 21.1 million of the shares, while its directors, staff and associates had subscribed for about 20% of the offering.
"We have advanced the Kiziltepe Sector of the Red Rabbit Gold Project though to pre-production, and following the grant of the final applicable permits, our Joint Venture partners, Proccea Construction, will progress with the building of the mine," Ariana Managing Director Kerim Sener said in a statement.
"With an initial project reaching maturity in the development curve, and revenue generation from Kiziltepe anticipated following the mine going into production, Ariana is now turning its attention to the wider Kiziltepe area. This is an area that has to date yielded highly encouraging exploration results," Sener added.
Ariana Resources shares were down 11.7% at 0.905 pence Wednesday morning as the subscription set a new benchmark price.
By Steve McGrath; [email protected]; @SteveMcGrath1
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