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Ariana Resources, the gold exploration and development company focused on Turkey has announced that it has entered into an investment agreement with Metal Tiger (LSE:MTR) that includes a direct equity investment of up to £150,000 by Metal Tiger for shares with attaching warrants in Ariana.
Dr. Kerim Sener, Managing Director, commented:
“Ariana is pleased to announce a strategic investment in the Company by Metal Tiger which adds to the Company’s underlying cash position. The full amount of the investment, when received, is expected to provide Ariana with sufficient working capital for core Company operating costs until Q4 2015.
“This visibility of forward funding is key to enabling management of the Company to focus on development of our gold production plans at Kiziltepe; the furtherance of new exploration and development opportunities out of existing interests; and the generation of value in respect of our Joint Venture with Eldorado Gold Corporation, and in particular the Salinbas/Ardala asset.
“We are also keen to consider a variety of new opportunities that upcoming licence auctions could offer both Ariana and Metal Tiger shareholders.”
Investment Agreement:
The key terms of the investment agreement are as follows:
– Metal Tiger has made an initial investment of £75,000 for 8,333,333 Ariana new ordinary shares at a price of 0.9p per share. This amount has now been paid to Ariana. Metal Tiger will also receive 8,333,333 warrants to subscribe for new ordinary shares in Ariana, within a three-year term at an exercise price of 1.8p per share;
– Metal Tiger will invest a further £75,000 for 8,333,333 Ariana shares at a price of 0.9p per share within 20 business days of Ariana confirming via an AIM announcement, receipt of the forestry permits, as previously advised to the market as a pre-requisite for process plant construction and gold production. The second instalment may be accelerated and paid earlier, at Metal Tiger’s option. The second instalment commitment shall only remain available to Ariana provided the forestry permits are received by 30 June 2015. On payment of the second instalment Metal Tiger will receive an additional 8,333,333 warrants to subscribe for new ordinary shares in Ariana, with a three-year term at an exercise price of 1.8p per share;
– In the event that Ariana confirms via an AIM announcement that they have sold their interest in the Salinbas/Ardala project for cash or share consideration in excess of US$15 million, the price of any un-exercised warrants will increase by 50% to an exercise price of 2.7p per share.
Application will be made for the New Ordinary Shares which will rank, pari passu, with all existing ordinary shares in the Company to be admitted to trading on AIM. Admission is expected to take place on or around 12 February 2015.
Further to Admission, the Company’s issued share capital will consist of 661,171,307 ordinary shares with a nominal value of 0.1p each, with voting rights. The Company does not hold any Ordinary Shares in Treasury. Therefore the total number of Ordinary Shares in the Company with voting rights is 661,171,307.
Ariana and Metal Tiger have agreed to collaborate to identify and consider new resource investment opportunities in Turkey where both parties may be able to participate. Most notably both companies are keen to consider the additional opportunities that may arise in respect of fresh licence auctions due to take place in the next two months in Turkey. Further information will be provided to the market in respect of this collaboration in due course.
