Ariana Resources Share Discussion Threads

[kaos3] 25/1/2020 17:06

I would prefer 2 different "major" JV partners - each for one project - we could not be "played" all at the same time. on the other hand - if we and one of the other partners have more than 50 % - the eventual bad partner is in check.

a JV partner in Turkey is a reality - due to rising nationalism, possible obstruction of the business if not agreing to JV, JV partner has capital, expertise and connections.

in an ideal world I too would go just with the first JV partner and then alone - but in the real world going alone would probably be worse decision overall.

all imho

[risa5] 25/1/2020 15:09

Ariana Resources rises following “exceptional” results from Tavsan sampling programme

Calum Muirhead
09:11 Wed 22 Jan 2020

The company is now planning to work on a revised mineral resource for the project in the second quarter that will be incorporated into its mine plan

Ariana Resources PLC (LON:AAU) has hailed “exceptional” results from a resources sampling programme at the Tavsan gold project in Turkey, part of its Red Rabbit joint venture.
Kerim Sener, managing director of the AIM-listed firm, said the results demonstrated that the sampled areas of the project were “typically higher grade” than the overall resource, suggesting that there was an opportunity to “identify several rich zones of “structurally-controlled mineralisation within the orebody as a whole”.

READ: Ariana Resources cruises past production target after strong final quarter

Ariana said the significant results, which included 3.5 metres of drilling at 9.28 grams per tonne (g/t) of gold and 30.5 g/t of silver, supported the potential conversion of a JORC exploration target at the Tavsan South are of the project to an inferred resource, and that follow-up drilling is planned for the next phase of project development.

Sener added that the company will be working on a revised mineral resource estimate for the whole project in the second quarter of the year which will then form part of its mine plan for the project once permits are received.

Proactive Investors

[thanksamillion] 25/1/2020 14:23

The downside of being in JV particularly one where the company owns less than 50% is that any future bid for AAU is unlikely. Our current association with Procea could perhaps be overcome if a generous offer were to come by, however the new arrangements should they come to pass would make AAU unattractive to any bidder, as no control of the resources would be possible.

This is not to argue against the new arrangement, just making the point.

[temujiin] 25/1/2020 13:18

It does seem the new partner intends to produce from Salinbas as per RNS

'The MoU ~ will enable the Company partially to monetise its successful development of the Kiziltepe Mine ~ and its earlier-stage Salinbas Gold Project, targeting the funding of the Salinbas asset to production.'

RNS also says AAU will be
'be free-carried on further costs associated with the development of the Salinbas Project'.

This needs clarification as I'm not sure AAU have the funds to pay even 23.5% of developing the mining facilities for Salinbas. Hypothetically if the new partner are happy to guarantee/ loan AAU or 'free carry' for this cost, then it makes the deal more attractive.

[rjwoodrjwood] 25/1/2020 12:48

My only issue with the deal is the loss of meaningful control, it won't matter how much anyone offers to buy out Salinbas if our (majority)partners decide they want to develop it......and presumably we pay 23percent of the ongoing costs!

[temujiin] 25/1/2020 12:11

dixi25 Jan '20 - 11:34 - 19216 of 19217
Currently I'm JV Salinbas only
==========

Agree. My concern about effectively giving up control and becoming a junior 23.5% partner is what happened to Rockhopper with their JV with Premier Oil. True it's a different commodity and different scenario, but unless there is protection for the junior partners (Proccea and AAU) then imo we need to keep an open mind, consider the deal carefully and what we are giving up, before just looking at the upfront money.

[temujiin] 25/1/2020 11:58

Lifted from LSE on CNR BB. Guess there's always the possibility we may get taken out completely at some point. Credits to Wondergoals
=========================

hxxps://sprott.com/insights/video-sprott-bulks-up-gold-investment-team-ahead-of-expected-gains-in-gold/

"You are looking for [smaller] companies that have had some challenges developing individual mines, and their costs of capital are high. They've had some issues perhaps with timing; because we all know these projects are taking longer and longer to develop. They're unloved, they're uncovered and yet they might have a quality project with a long reserve life at decent costs. That's the kind of sitting duck for the big companies to acquire."

"I think there will be even more deals in 2020, maybe not the same dollar value because the mega deals were done last year. But we are likely to see many of these individual single mine, junior miners getting acquired."

[dixi] 25/1/2020 11:34

Currently I'm JV Salinbas only, keep rest as-is. But I have no idea of the actual thinking behind closed doors for the proposed % split. I have to hope that AAU have investors interests at heart and not some flight of fancy. All will be revealed soon.

[temujiin] 25/1/2020 10:09

Think most would settle for $150m but to get to that figure, Salinbas/Hot Gold Corridor needs to be valued and sold for $652m if we own 23%, and only $150m if we own 100%.

The question is would AAU be quicker getting it to $150m by ourselves and by keeping Kiziltepe and developing Tasvan and the satellite deposits with Proccea, or $652m with the JV's help?

I appreciate some have already pretty much decided the JV route is the safer and/or better option, which it might be. However I'm going to wait until we see the deal in detail before deciding.

[bigglesbingham] 25/1/2020 09:33

I'd settle for 150 mill for 23% 5yrs sooner than it would have been. Appreciate some on this board would like higher percentage over a longer period.

[shortarm] 25/1/2020 09:02

170 million for only 30 percent! :-)

[plasybryn] 25/1/2020 08:18

Once we get drilling in ernest in The Hot Gold corridor, with the financial backing of the new conglomerate, who knows what could happen? Those who are interested and don't know, should investigate the transformation Mariana Resources achieved with Hot Maden just 8 km south of our Hot Gold Corridor prospect selling out in quick order to Sandstorm for c. $170m. I know we will at first concentrate on Salinbas /Ardale in the north of the corridor but then what comes next?

[k mon] 25/1/2020 00:10

Loved this ...

"at very best we’ll be looking at around 10p by the end of the year.
That’s not even a 4 bagger."

- a 'fairly sure' ..3 bagger … even if .. at best 4 bagger ….

Suits me & my SIPP … Just Fine ..

… That's still enough to let me retire ... Disgracefully … ;0)

[cbeadle] 25/1/2020 00:02

I would think of ARCM or BMV as having more like 10 bagger potential

[gaffer73] 24/1/2020 23:23

Care to share which ones?

[moneymaker2015] 24/1/2020 23:11

They might have needed the money now or wanted to put profits elsewhere. As much potential AAU has, at very best we’ll be looking at around 10p by the end of the year. That’s not even a 4 bagger. There’s many other (riskier) shares on the AIM with potentially higher gains. Don’t get me wrong, I’ve been holding here for a while and have no plans of selling up anytime soon, but you can’t knock others for taking profits.

[bernymadoff] 24/1/2020 18:04

Big 1m buy picking up the shares sold by snowflakes who can't see the bigger picture here nor are patient enough to wait a few weeks for massive upside. Paid premium as well 2.9p. Sometimes I don't understand PIs they're like lemmings. Hold for gold, literally. If the deal had broken down they'd have notified us by now. And remember they need to give shareholders notice to vote it through so if it's going to be done by end of Feb they will need to announce soon imho.

[swallowsflysouth] 24/1/2020 18:00

Tempting as it, i will not top up until i have seen if the JV is going ahead and on what terms assuming snowflakes don't get in the way.

[jc2706] 24/1/2020 17:58

Data warehousing terminology. Not that relevant to a gold miner admittedly.

[plasybryn] 24/1/2020 17:44

Glad I'm not the only one Paul.

[paul280i] 24/1/2020 17:38

Plas - I bet you are regretting asking about snowflakes. These answers have left me totally confused, I think they are making these definitions up!

[jc2706] 24/1/2020 16:38

Only in a Snowflake Ekuuleus. In a traditional star schema the dimensions are flattened and denormalised.

[bigglesbingham] 24/1/2020 16:33

Really strange buys/sell action here today ???