Ariana Resources (ASX:AA2) has entered into a binding definitive agreement with Hongkong Xinhai Mining Services, part of Shandong Xinhai Mining Technology & Equipment, securing up to $11 million in strategic investment and technical support to advance the Dokwe Gold Project in Zimbabwe.
Under the agreement, Xinhai will provide $8 million in immediate equity funding, including a non-refundable $500,000 signing fee already received, through the issue of CDIs at $0.30 each, giving Xinhai an initial 10.19% stake in Ariana upon completion of the first tranche.
The agreement also covers up to $3 million in technical services, including a metallurgical sampling and testwork program and completion of a definitive feasibility study, to be paid through additional CDI issuances subject to shareholder approvals.
Xinhai will receive options to acquire further CDIs and will be entitled to nominate one director to Ariana's board upon satisfaction of certain conditions.
Ariana said the funding will strengthen its balance sheet and support general working capital, while the partnership with Xinhai is expected to accelerate the advancement of the Dokwe Gold Project through feasibility.