Business
Ariana Resources plc : £1.25 million subsc...
Ariana Resources plc : £1.25 million subsc....
About this update from Ariana Resources Plc
[{"type":"text","content":"\n Ariana Resources plc : £1.25 million subscription and Equity Swap17 June 2013AIM: AAU£1.25 MILLION SUBSCRIPTION AND EQUITY SWAPTOTAL VOTING RIGHTSAriana Resources plc (\"Ariana\" or \"the Company\") is pleased to announce that it has conditionally raised £1.25 million (before expenses) by way of a subscription by Lanstead Capital L.P. (\"Lanstead\") for a total of 125,000,000 ordinary shares of 1p each (the \"Subscription\").Dr. Kerim Sener, Managing Director, commented:\"We are pleased to welcome Lanstead Capital as shareholders in the Company and look forward to advancing the development of the Kiziltepe Sector of the Red Rabbit Project through environmental certification and on to construction. The investment from Lanstead Capital comes at an important time in the development of the Company and provides us with sufficient capital to proceed to the construction phase of the Kiziltepe mine as the Company progresses its near term intention to become a producer.\" Use of ProceedsThe funds will be used by the Company to help develop the Company's Red Rabbit Project in western Turkey, to continue exploration in the wider Red Rabbit Project Area and for general working capital. The Company is expecting to finalise environmental and various construction permitting matters during Q3-Q4 2013 in order to enter the construction phase by year-end, once mine finance is secured at the Joint Venture company level. The SubscriptionLanstead, an institutional investor, has subscribed for 125,000,000 new ordinary shares of 1p each (the \"Lanstead Subscription Shares\") at 1p per share for an aggregate consideration of £1,250,000. In addition, the Company has entered into an Equity Swap Agreement with Lanstead, which allows the Company to retain much of the economic interest in the Lanstead Subscription Shares. The Equity Swap Agreement will allow the Company to secure much of the potential upside arising from near term news flow. The Equity Swap Agreement provides that the Company's economic interest will be determined and payable in 24 monthly settlement tranches as measured against a Benchmark Price of 1.33 pence per share. If the measured share price exceeds the Benchmark Price, for that month, the Company will receive more than 100 per cent of the monthly settlement due. There is no up...