Deal with YA Global funds Red Rabbit gold project toward production
By Devika Patel
Knoxville, Tenn., Jan. 21 - Ariana Resources plc said it arranged a standby equity distribution agreement with YA Global Master SPV Ltd. The three-year agreement is for £5 million.
YA has committed to purchase up to £5 million of the company's ordinary stock over the course of three years at a 5% discount to the prevailing market price during the 10-day pricing period.
The maximum advance that may be requested is 200% of the average daily trading volume of shares multiplied by the volume-weighted average price of the shares for each of the 10 trading days prior to the drawdown request. The facility may only be drawn down once every 10 days.
This arrangement provides enhanced access to capital, if required, for significant project and investment decisions expected in the medium term, as well as flexible financing for the Red Rabbit gold project as it approaches the production phase.
Ariana is a London-based gold exploration and development company focused on deposits in Turkey.
| Issuer: | Ariana Resources plc
|
| Issue: | Standby equity distribution agreement
|
| Amount: | £5 million
|
| Tenor: | Three years
|
| Price: | 5% discount
|
| Warrants: | No
|
| Investor: | YA Global Master SPV Ltd.
|
| Settlement date: | Jan. 21
|
| Stock symbol: | London: AAU
|
| Stock price: | 4.3p at close Jan. 21
|
| Market capitalization: | £9.95 million
|
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