Ariana Resources Share Discussion Threads

[mcmather] 25/11/2019 19:20

Soul does "for all new projects injected in to the JV in the future" mean post-this new JV in which Salinbas will already be part of?

[backmarker] 25/11/2019 19:03

the odds on "3p by Xmas" have just got a lot better.

I still don't understand why the share price got down to 2p in the last few weeks. at least there were no doubters on this board.

must now seek out some cheap Veuve Cliquot.

[temujiin] 25/11/2019 18:53

Excellent news today.

My question for those with good contacts is this

Ariana will:-


2. be free-carried on further costs associated with the development of the Salinbas Project.

Q. What does this mean? Presumably just up to DFS?

[soulsauce] 25/11/2019 18:47

mcmather point 4. You get the answer of 3x costs there.

There is definitely some uncertainty that needs clarifying.

[grimreaper2019] 25/11/2019 18:39

They are appearing at the Mining Capital event on 28th November also.

[tim000] 25/11/2019 18:39

On rereading again, jbravo2 is clearly right: ultimately, Salinbas will be aggregated into Zenit and that both AAU and Proccea will each own 23.5% of the new business, and the new partner 53%. But as he says, it's not clear what Proccea will contribute to earn its 23.5% of Salinbas, nor when that final part of the transaction will take place. The language of the RNS suggests that this final part of the consolidation might be delayed significantly, in which case it would be reasonable for the acquisition price to increase, as the project progresses. Perhaps finance is currently an issue for Proccea?

[mcmather] 25/11/2019 18:32

Agree; also does "absorbed" mean for zip or do AAU still get 3 x exploration costs back?

[swallowsflysouth] 25/11/2019 18:30

As a generalisation, i read the rns as meaning Proccea to run mines, 3rd party to provide capital, AAU to provide expertise in which licences to get, how to explore, feasibility study etc.

[julianc35] 25/11/2019 18:26

Sorry to butt in but it says quite clearly that teh new partenr will have 53% of Greater Pontides after the earn-in of $8m. seems to be pretty cheap!

Would appreciate someone getting this clarified tonight

Under the terms of the MoU, once the Proposed Partner has acquired 17% of Greater Pontides a further budget of US$8 million will be made available by way of earn-in to take the Proposed Partner to a total 53% to achieve the completion of the Feasibility Study and Environmental Impact Assessment ("EIA") of the Salinbas Project and its associated works (to which Proccea will be contributing).

[jbravo2] 25/11/2019 18:24

It's clear Proccea will own part of Salinbas it's going to be in Zenit. (They'll own as much as AAU will!)
What isn't clear is what they're contributing to earn their share.
Happy I stuck with AAU, shame it's such a small holding.

I presume with the size of holdings discussed earlier someone is going to be able to ask for clarification at the presentation?

[tim000] 25/11/2019 18:10

biggles, no, I'm a different one. I agree that Proccea won't seem to be involved in Salinbas, but further careful reading of the RNS is required.

[soulsauce] 25/11/2019 17:58

Where does it say Proccea are getting any part of Salinbas?

[davidspringbank] 25/11/2019 17:57

It seems to me an opportunistic move to get valuable resources on the cheap. I take my hat off to them regarding the timing of their action. The gold and silver prices are still consolidating prior to taking off to new highs. However, the new financial muscle will help them achieve their goal of becoming a top miner.

Charles, I knew it wouldn't last at EUA although I had hoped for the best, but planned for the worst. EUA has recovered to 3.5p so there is still hope of exceeding previous highs sometime in the future.

[soulsauce] 25/11/2019 17:52

Yes it needs clarifying mcmather. I don't read it that Proccea are in on Salinbas.

[mcmather] 25/11/2019 17:45

Think it needs clarifying re "Zenit, which will, at the appropriate time, absorb Greater Pontides (ie Salinbas)".

Proccea paid $8(?) million to buy in to Red Rabbit (Kiziltepe etc). If Salinbas is "absorbed" into the current JV, Zenit, what are Proccea contributing to acquire partial rights to / a share of NE Turkey?

[bigglesbingham] 25/11/2019 17:42

Tim000 your not same tim who I met at plant impact open day several years ago?

[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.