Ariana Resources Share Discussion Threads

[tim000] 25/11/2019 17:39

The Zenit and Salinbas transactions are distinct. On rereading it, however, I see that the $8 mn spent by the partner at Salinbas will entitle the partner to a 53% stake, the same as its stake in Zenit. AAU will be diluted to 47% of Salinbas, but only at the point at which the project will be worth significantly more, the partner having financed additional drilling, an EIA, a Feasibility Study, and land acquisition.

[bigglesbingham] 25/11/2019 17:29

Read flashnote doesn't it state new zenit include salinbas and AAU own 23% or am I misreading it. ??

[bigglesbingham] 25/11/2019 17:27

Replying to myself ignore last post

[tim000] 25/11/2019 17:19

Worth pointing out that these values should rise dramatically once production begins.

[soulsauce] 25/11/2019 17:13

tim000 yes that's how I would read it.

bigglesbingham don't forget the previous JV partner also spent about $8m on it.

[tim000] 25/11/2019 17:09

Imo the $8 mn earn-in part of the transaction isn't entirely clear, in particular whether it will then dilute AAU's 83% share, and by how much. I imagine it will, perhaps in proportion to the purchaser's acquisition of 17% for $5 mn. Best therefore to ignore that part of the deal at this stage. What we do know is that 17% is valued at $5 mn, hence imo the entire project is valued at $29.4 mn, of which AAU's 83% share is $24.4 mn (£18.9 mn, or 1.785p per share).

[swallowsflysouth] 25/11/2019 17:07

Biggles, $70m i think ? but not sure if including $8m exploration costs is valid. However i think the value of Salinbas is multiples of any current valuation, just needs to be established by further exploration.

I'm happy with slightly new direction company appears to be going in. Retaining a decent % in projects but all costs being paid for by others as far as i can make out. Looks a distinct possibility lined up to be number one explorer in Turkey. All of the benefits and none of the costs.

[bigglesbingham] 25/11/2019 16:52

Have I got this right 17% salinbas which is currently wholly owned by AAU plus $8m exploration revenue gives a value on salinbas of $76 m ??? The results of exploration; which AAU are not therefore paying for ; could dramatically increase the value well beyond the current figure. This doesn't take into account their $25m for 26.5% stake in the joint venture? Please correct me if I've misread the rns as I've been snowed under at work.

[plasybryn] 25/11/2019 16:50

Let's hope lots turn up. Perhaps today's RNS will encourage them to come.

[bigglesbingham] 25/11/2019 16:45

Q&Session tonight should hopefully enlighten a few more buyers for tomorrow's open ,

[soulsauce] 25/11/2019 16:38

No as Proccea are part of the deal.

[nov31] 25/11/2019 16:36

Could it still be proccea?

[5huu] 25/11/2019 16:32

Well, the one day I don't keep my eyes on the market and I get this pleasant surprise. Well done everyone. A well deserved re-rate looks to be well on the way. Any speculation anywhere about who the partner is?

[bigglesbingham] 25/11/2019 16:08

I'll settle for that up until signing I figure price will rise to 75% of the estimated value figure quoted so just under 4p by my reckoning and let's not forget the potential positive impact of tarsvan, drill results debt repayment, kizulkuck etc not a bad day all in all. Wouldn't be surprised if this bounces again tomorrow as news digested . Plus share-prophets and other press reports filter through .

[risa5] 25/11/2019 16:07

Ariana rockets as it inks MoU on partnership with major Turkish construction group
Under the agreement, Ariana will sell stakes in its Salinbas and Kiziltepe projects, bringing in US$55mln and US$8mln in equity to fund production

Ariana's projects are located in Turkey's 'Hot Gold Corridor'


Ariana Resources PLC (LON:AAU) shares rocketed on Monday after it agreed a potential partnership deal with a major Turkish construction firm for a number of its projects in the country.
The AIM-listed explorer said the proposed deal, outlined in a memorandum of understanding (MoU), will involve the sale of 17% of its Salinbas gold project for US$5mln.
READ: Ariana's flagship Kiziltepe mine enjoys a record quarter of gross income
The deal also proposes the sale of 53% of Zenit, Ariana’s joint venture (JV) with Turkish group Proccea which operates the Kiziltepe mine, for US$50mln to be split between the JV partners equally, as well as an US$8mln cash injection by the proposed partner to help bring the project into production.
Kerim Sener, Ariana’s managing director, said the partnership, if approved, “will create a formidable exploration, development and production group focused on Turkey”.
“This [MoU] will combine the unique skill-sets of each Partner in a mutually beneficial and synergistic manner. We look forward to advancing the proposed MoU into a joint venture capable of unlocking the full value of our assets in Turkey, which will also target the development of a future pipeline of high-value production projects.”
The company expects to secure binding agreements and shareholder approval for the partnership no later than February next year.
The news sent Ariana’s shares soaring 33.3% higher to 2.8p in early afternoon.

[soulsauce] 25/11/2019 15:38

tim000 I worked out about 4.9p per share but will take your 5.6p as I was valuing Zenit on current undervaluation.

[tim000] 25/11/2019 15:34

Fwiw, I calculate the transaction entails cash proceeds to AAU of about 2.2p per share (undiluted); while AAU's remaining shares in Zenit and Salinbas are implicitly valued at 1.6p and 1.8p per share respectively, a total of about 5.6p per share.

[mcmather] 25/11/2019 15:21

Arzu South drill results back within the week, 470m likely extension for Arzu North and grade control sampling from Derya also beginning this coming week - all from the video posted by carcosa. Life of Mine at Kiziltepe will be extended so might we now see the addition of a 2nd ball mill??

[ironstorm] 25/11/2019 15:03

Wowser just got back from some meetings. Was not expecting this!!!!

Lots more in this yet . . . .

[apfindley] 25/11/2019 14:54

Im invested too. Since they were on plusmarkets. I'm not questioning todays news, why are you being defensive. It's great news, I'm on about a sum for the complete set of assets.

[thanksamillion] 25/11/2019 14:52

Soul, I meant "changed hands" one buyer one seller = 15m,

I take the point that the really large trades have not appeared yet.

[soulsauce] 25/11/2019 14:49

Yes Mr Seller getting a brucie bonus today but once clear this should head over 3p.