• Ariana targets US$5 million in local equity for exploration ahead of Dokwe's US$164 million construction programme
• Dokwe's estimated construction cost has doubled alongside expanded processing capacity and a longer mine plan
• The project's US$740 million posttax valuation depends on gold prices, technical assumptions and future development financing

Harare-  Ariana Resources is seeking up to US$5 million from Zimbabwean investors through the Victoria Falls Stock Exchange to finance additional exploration at its Dokwe Gold Project, as the company advances a proposed mining operation requiring an estimated US$164 million in capital before production begins. According to its prospectus published on 9 November 2026, the placement will finance drilling, geological surveys and resource development, with construction funding to be arranged separately following completion of a definitive feasibility study targeted for the first quarter of 2027. The proposed maximum subscription represents approximately 3% of Dokwe's estimated preproduction capital requirement, illustrating the difference between advancing the geological investment case and financing the infrastructure needed to establish a producing gold mine.

The offer is scheduled to open on 11 November and close on 2 December, ahead of the proposed VFEX listing on 11 December. Ariana intends to raise a minimum of US$3 million and a maximum of US$5 million through a private placement to selected institutional and qualifying retail investors. Zimbabwean asset manager Dendere has agreed to participate as a cornerstone investor, subscribing US$1 million at US$0.022 per share, compared with US$0.023 for other eligible subscribers. Its early commitment provides part of the minimum fundraising requirement, while the balance remains subject to investor subscriptions and applicable conditions.

The placement creates a financing channel for an exploration programme intended to improve the technical information supporting Dokwe's development. At maximum subscription, Ariana has allocated US$1.5 million to resource extension drilling at Dokwe North and Dokwe Central, US$1.35 million to geological mapping and geophysical surveys, and US$1.8 million to exploration and sterilisation drilling. A further US$239,756 will support the evaluation of additional mineral opportunities elsewhere in Zimbabwe. After estimated placement and listing expenses of US$110,244, approximately US$4.89 million will remain available for the programme.

The company will direct the proceeds towards strengthening resource confidence, identifying extensions to existing mineralisation and evaluating areas intended for mining infrastructure. Sterilisation drilling will assess ground designated for processing facilities, waste dumps and other permanent developments before construction. These activities can influence the final mine design and reduce geological uncertainty during investment appraisal. Ariana states that none of the placement proceeds will finance production equipment purchases, property acquisitions or debt repayment.

The proposed development has expanded substantially since its earlier prefeasibility assessment. Ariana's previous study contemplated a processing operation treating approximately 1.5 million tonnes annually, with initial construction expenditure estimated at US$82 million. The revised study released in May 2026 increased processing capacity to 2.5 million tonnes annually and estimated preproduction capital at US$163.9 million. The revised requirement comprises approximately US$117.4 million for site establishment and construction and US$46.5 million in capitalised mining expenditure before production.

The increase reflects changes to the scale and design of the proposed operation. Ariana's revised production plan provides for an initial 12 year open pit phase averaging approximately 80,000 ounces of gold annually, followed by eight years of stockpile processing at approximately 20,000 ounces annually. Total recovered gold is projected at 1.06 million ounces, with peak annual production estimated at 100,000 ounces. The mine is also expected to require US$33.1 million in sustaining capital over its operating life, separate from the initial construction requirement.

The revised project economics provide the commercial basis for seeking development financing. According to Ariana's updated prefeasibility study, Dokwe has an estimated posttax net present value of US$740 million using a 10% discount rate and an assumed gold price of US$4,250 per ounce. The study also projects a pretax internal rate of return of 92% and capital recovery within approximately one year of commissioning. These values represent financial model outputs dependent on the production schedule, operating expenditure, commodity prices and successful construction of the proposed mine.

The gold price assumption has become particularly relevant to the investment case. International spot gold traded around US$4,100 per ounce on 9 November, below the price applied in Ariana's base case. The company's sensitivity analysis shows that its pretax net present value falls to approximately US$504 million at an assumed gold price of US$3,250 per ounce, rising to approximately US$1.61 billion at US$5,250. The estimates demonstrate the scale of the project's exposure to gold prices, while the eventual financing case will also depend on operating costs, production recoveries and capital expenditure.

Dokwe's projected operating expenditure reflects the challenge of extracting gold from a relatively low grade, high tonnage deposit. The revised study identifies approximately 45.9 million tonnes of proved and probable ore reserves at Dokwe North, with an average grade of 0.77 grams per tonne and contained gold of approximately 1.13 million ounces. The proposed mining operation has an estimated waste stripping ratio of 3.7 tonnes for every tonne of ore, placing considerable importance on mining efficiency, processing throughput and the management of operating expenditure.

The study estimates average life of mine cash operating costs of US$1,685 per ounce and all in sustaining costs of approximately US$1,995 per ounce. These assumptions establish the operating margin available before taxes, financing charges and other corporate costs, while actual performance will depend on realised production, processing recoveries and the cost of sustaining the operation.

The technical investment case also contains an important qualification. The combined Dokwe North and Dokwe Central mineral resource estimate stands at approximately 1.6 million ounces, while the revised production schedule incorporates around 1.8 million tonnes of material from Dokwe Central classified as an indicated mineral resource that has not been converted into ore reserves.

Ariana attributes the outstanding classification to insufficient metallurgical recovery and pit wall slope data. Further technical work is intended to address these requirements, although the company acknowledges that conversion is not guaranteed. Changes to the amount of material qualifying for inclusion in the final mine plan could affect the production schedule and the economic assumptions presented to prospective financiers.

The next phase of study work is being supported by Chinese mining engineering group Xinhai, which entered into a strategic investment and technical cooperation arrangement with Ariana in December 2025. The agreement included an A$8 million equity investment, funding support for metallurgical testing and additional contributions towards the definitive feasibility study. Xinhai's involvement provides experience in processing design and mine development, supporting the preparation of the technical information required for future construction financing negotiations.

The partnership does not establish that the US$164 million construction programme has been funded. Ariana has indicated that project financing activities will commence in 2027 following the definitive feasibility study. The company will therefore need to secure a financing structure suited to the development's capital requirements, projected production profile and commercial risks.

Ariana's existing financial position provides capacity to advance that work. The prospectus reports pro forma cash of approximately US$27.7 million and no drawn debt following the disposal of its residual interest in the Kiziltepe gold mining operation in Türkiye. The company also retains a minority investment in Zenit, which owns the Tavşan mine and Salinbaş project. The pro forma cash figure reflects the adjusted financial position presented in the prospectus and should not be interpreted as a verified cash balance immediately before the proposed placement.

The combination of existing liquidity, the Xinhai partnership and the intended VFEX fundraising provides resources for exploration and technical studies. The larger construction programme remains dependent on the completion of feasibility work and agreement of development financing terms. These negotiations will need to establish the cost of capital, allocation of project risks and financial commitments required before mining and processing infrastructure can be constructed.

For Zimbabwe, Dokwe offers a potential expansion of production from the large scale gold mining industry, where deliveries have remained comparatively subdued despite strong national gold output. According to 2025 figures reported by the Chamber of Mines, Zimbabwe delivered approximately 46.7 tonnes of gold, including 34.9 tonnes from artisanal and small scale miners and 11.85 tonnes from large scale producers.

At Dokwe's planned initial production average of 80,000 ounces, annual output would be equivalent to approximately 2.49 tonnes. Peak production of 100,000 ounces would represent about 3.11 tonnes, equivalent to approximately 21% and 26% respectively of Zimbabwe's 2025 large scale gold deliveries. These comparisons illustrate the potential contribution of a completed Dokwe mine against the historical production base, without accounting for changes in national output or production at other mines before Dokwe commences operations.

The development could also create demand for mining services, equipment, construction and technical employment in Matabeleland North. Its contribution will depend on the timing of investment, domestic procurement capacity and the eventual economics of commercial production. The project still requires completion of technical studies and development financing before those benefits can be realised.

Ariana's consolidated mining lease application, submitted in March 2021 over approximately 6,622 hectares, also remains under review. The company states that its existing mining claims remain valid and permit the planned mining activities. The outstanding application would simplify the administration of the mineral rights, while financing negotiations will require assessment of the project's broader regulatory, environmental and operational obligations.

The proposed VFEX listing introduces an additional capital market dimension. Ariana's ordinary shares already trade on London's Alternative Investment Market and are represented by depositary interests on the Australian Securities Exchange. The Zimbabwean admission will provide local investors with access to the same underlying ordinary equity through a regulated domestic trading venue, subject to applicable transfer procedures.

The private placement requires subscriptions of at least US$3 million before the secondary listing can proceed. Its results will provide an initial indication of domestic institutional demand for participation in Dokwe's development programme. The transaction will also establish the extent to which Zimbabwean capital can support exploration at a locally situated mining project through an internationally listed company.

The more substantial investment decision will follow the definitive feasibility study, when Ariana must establish binding financing arrangements for the US$164 million construction requirement. The study will need to confirm the project's mineral reserves, processing performance, infrastructure requirements and projected costs before financiers can assess the development on a more definitive basis.

Ariana's US$5 million placement will support the technical work needed to advance Dokwe towards that decision. The company's existing resources and strategic partnership strengthen its capacity to complete the preparatory programme, while the construction financing package remains the central requirement for converting the project's estimated 1.6 million ounce resource base into a commercial gold mining operation.

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