Yorkville Advisors, the US-based alternative investment manager, has entered into a GBP5 million Standby Equity Distribution Agreement (SEDA) on behalf of one of its funds with Ariana Resources Plc (AIM:AAU), an AIM-listed and PLUS-traded gold exploration and development company focused on Turkey. The deal was advised out of London.
Ariana Resources entered into the SEDA to provide additional financing, when required, to support its exploration programme.
Pioneered 10 years ago by Yorkville, a SEDA offers companies a low risk, cost effective way of optimising their capital structure in pursuit of their growth strategy. Pursuant to the terms of the SEDA, Ariana Resources has the discretion to withdraw funds of up to GBP5 million in tranches in exchange for the issue of new equity for up to 36 months.
Dr. Kerim Sener, Managing Director of Ariana Resources, says: “We are very pleased to have established a solid relationship with Yorkville Advisors. With our knowledge of the resources sector in Turkey, we are well positioned to identify and advance new opportunities in the country. The SEDA facility provides us with ready access to funds in a manner that is mutually beneficial to us and to Yorkville. This is particularly relevant now that we are accelerating the joint venture development of our Red Rabbit Project in western Turkey.”
Brian Kinane, Managing Director, Yorkville Advisors UK, says: “We are pleased to be entering into this deal with Ariana Resources. We have an existing track record with the key executives of Ariana and it was logical to continue that support for Ariana given both the resource opportunity and management strength.”
