Ariana Resources Share Discussion Threads

[jc2706] 19/12/2019 10:47

CC,

Frameworks and terms can be pretty loose!

[plasybryn] 19/12/2019 10:06

Agreed subject to shareholder approval of course.

[charles clore] 19/12/2019 09:44

If the framework is agreed then it's only the terms that have to be agreed.

[dixi] 19/12/2019 09:20

'The framework is agreed', if the MoU comes to pass it seems fair to assume that the details will not drastically change, assuming this goes ahead. So it seems reasonable that it is creating debate. If it does proceed I do not necessarily think it means we will see answers to questions currently being asked.

[ironstorm] 19/12/2019 08:13

It is impossible at the moment to see the shape of the deal. I fear the mining maven muddied the waters somewhat. As it does. It really take into consideration the RNS details properly but brings some of it into their article. Perhaps it was finished after the Xmas party.

I am happy to sit on my hands in the belief that payday is moving towards me.

[bigglesbingham] 19/12/2019 08:07

My point exactly but you put it more eloquently JC

[jc2706] 19/12/2019 07:22

I am somewhat confused by the discussion here. A MoU is, by definition, incomplete. It is a statement of intent but by no means conclusive. Whilst the framework is agreed the details will need to be clarified and it does not mean that any deal will be done (as many fall apart as succeed in my experience).

[bigglesbingham] 18/12/2019 19:19

I had a chat with Michael, he has had experience of a similar situation which they decided to keep to themselves until all info was divulged. Information leaked out as it invariably does and it had a bad effect on the shareprice ( don't believe that deal went through). With his previous experience in mind He told me they'd made a calculated judgement to go to market and explain what their intentions are subject to due diligence. I respect them for their decision. It has pros and cons but ultimately I believe it's had a positive impact on shareprice up over 10% since announcement and we know their thinking. Everyone likes detail I would argue me more than most but until we get final detail and DD we have to be patient. Sorry if I come across as preaching it's not my intention I'm just trying to state facts as I see them.

[8rad] 18/12/2019 18:36

Dixi….welcome aboard the good ship Muddling. In Kerim's last interview he was not willing to divulge either Greek or Turk.

[dixi] 18/12/2019 18:19

Hi bigglesbingham, I'm not especially against the MoU proposal. My point is that the MoU seems to have raised more questions than answers amongst investors (me included), causing uncertainty, the report appears to not address that issue. I guess that is inevitable but frustrating. Investors are clearly selling based on what is 'known', that is depressing the share price in my opinion.

[bigglesbingham] 18/12/2019 17:51

It very high level plas it is getting a revenue stream. It should be seen as a document which raises awareness for people to then do research , look at rnss about MOU. It's clearly not meant as a definitive contract agreement!!

[bigglesbingham] 18/12/2019 17:48

Perhaps to raise interest???? The principles are known. Would you rather nothing is said whatsoever? Many on this board would then be screaming why so quiet.

[dixi] 18/12/2019 17:04

Just further lack of clarity once the given information is picked over - it is said on here we cannot be told more because the information is not out there yet - so why commission (presumably) a report that does not have all the details yet either?

[plasybryn] 18/12/2019 16:50

Well the Report says it gets a steady revenue stream from the JV and this will obviously reduce once our share is diluted, so I think the report could have made this comment, but choose not too. Just wondering!!

[bigglesbingham] 18/12/2019 16:34

This is the further $8m to increase their stake to 53%

[bigglesbingham] 18/12/2019 16:31

Where do you get $ 50m from??

[bigglesbingham] 18/12/2019 16:30

No chance imho this is just highlighting salinbas hence no mention of buyin to kiziltepe.

[bigglesbingham] 18/12/2019 16:24

In the MOU it stated $8m would be injected into the project to give them 53%. There will also be input by procea although exact extent and form needs to be clarified (I explicitly asked this question to kerim and michael and was assured contribution will be made by procea). So say $6.5 m procea in cash equivalent $8 from new partner gives $14.5m towards exploration development of salinbas. Therefore monies will still need to be obtained for the project if cap ex $53 m . I expect this to be funded primarily through debt finance raised by new partner. However there would be a possibility of some monies having to be contributed by JV partners (say a 80% loan to value deal) I believe this may be what is being referred to in the report. I personally would hope it's all debt financed.

[thanksamillion] 18/12/2019 16:12

Plasybryn, we do get to share $50m, bird in the hand etc.

Carcosa, convertables usually sold in blocks ie £40k, though AAU may opt for lower value.

[plasybryn] 18/12/2019 16:00

Yes and it doesn't say anything about us diluting our stake in Red Rabbit to 23.5%. Given the report is pretty thorough, is this an error or a hint at a change of heart? Some I think might welcome that; that is just going for the tri-parite JV to develop Salinbas into a producing mine and keeping our 2 party JV for Red Rabbit. Then we keep 50% of our ever increasing profits from Kiziltepe and soon to be Tavsan.

[soulsauce] 18/12/2019 15:56

Second ball mill?

Surely they are on about our share of capes for Salinbas plant.

[mcmather] 18/12/2019 15:51

Another interesting line from the next page:

"...the company already benefits from a steady revenue stream in the form of its Red Rabbit JV in West Turkey. This partnership, which Ariana holds with Proccea Construction, encompasses the producing Kiziltepe mine, which generated £3m in net profit over H1 2019 alone and is also set for expansion".

[carcosa] 18/12/2019 15:51

"Should this stellar internal funding source (Red Rabbit) not cover the entirety of Ariana’s work at Salinbas, then Sener tells us the firm would still be more likely to
pursue convertible debt financing than reach out to investors for cash."

Well I hope Retail Investors get a chance to participate in that debt financing; but the likelihood of that is somewhere between nil and zero, I suspect.

[mcmather] 18/12/2019 15:50

Not sure what they mean; the previous page says:

"As part of November’s agreement, the proposed partner is expected to inject capital towards additional drilling and resource estimation and the delivery of a definitive feasibility study. It will also fund the completion of an Environmental Impact Assessment (EIA), permitting, freehold land acquisition, public relations, and new licences."

Whilst once the JV is incorporated, AAU only get 3 X times the discovery cost of NEW resources outside those already within the (edit) JV.

[thanksamillion] 18/12/2019 15:23

Suspect it is referring to exploration costs, which may be recovered (3 times) on any gold/silver discoveries.