Ariana Resources Share Discussion Threads

[soulsauce] 10/7/2020 10:06

Cheers Plasybryn, very interesting and point 1 is why I am so for the JV.

[bigglesbingham] 10/7/2020 09:59

Great post

[1candc] 10/7/2020 09:59

Plasybryn - good post, thanks

[plasybryn] 10/7/2020 09:54

In case this helps, these words are from my Notes of the meeting with the Co. the day the MoU was announced.
I wanted to know - Was Kerim OK with losing control of his baby after 14 years of slog & hardship?
Why would Ariana monetise Salinbas now before further drilling and completing the PFS to confirm the representative value?

The answer to 1. is Yes he is very happy as it has accelerated the monetisation of the assets, allowing directors and long standing shareholders to be rewarded, in the short term, for their considerable patience and support. It will also allow Kerim & his team to focus more on the work they love. Not only geology, exploration and discovery, but also accretive acquisition/investment opportunities (e.g. Lithium success in Australia & now an investment in Cyprus imminent).

The answer to 2. is I think they realised to get Salinbas/Ardale through EIA/PFS, Forestry permits etc. was going to cost a great deal (c. £3m) and could take them 10 years to get into production and even then still only focused on just the northern end of the Hot Gold Corridor. The new partner, which is involved in heavy construction (highways, dams etc.) wants to diversify into gold mining and apparently got interested in us via interest shown in the southern end of the Hot Gold Corridor at Hizarlyayla (8km north of Hot Maden). We weren’t told more but Kerim indicated that Hizarlyayla could be more prospective than Salinbas. It’s just they haven’t had the money or resource to exploit it. Then of course there is Derinkoy before Salinbas & Ardale.

Going this route means the new conglomerate can proceed “hard” (their word) with access to the necessary capital/finance to exploit all the opportunities. A dream come true for Kerim & Jack etc. So you can see why they like it and didn’t want to delay.

But it doesn’t stop there as there is of course lots to explore and develop at Tavsan & Kiziltepe etc (Red Rabbit), all of which can now be fast tracked. Obviously there will be logistics like employing more of the right people idc etc.

[charles clore] 10/7/2020 09:53

It occurs to me that no matter how much noise and obfuscation the me yjin brings to the table this is still undervalued by a country mile. That's why I am happy to keep buying under 4p. It's a steal imho.

[soulsauce] 10/7/2020 09:51

Small top up for me.

[lottsgold] 10/7/2020 09:47

That's something I hadn't factored in, in theory the profits we would have made will still be reinvested into development. That makes me even more for the deal.

[thanksamillion] 10/7/2020 09:38

That sounds about right to me as far as salinbas goes, the jv will also be benefiting from profits from the the existing jv(procea) mine and processing plant which is currently profitable.

[bigglesbingham] 10/7/2020 08:56

I too am in chf but different set up, that is more a momentum stock this is a more secure steady stock in my opinion so comfortable investing a lot more that elsewhere for a medium term return .

[kirbs4] 10/7/2020 08:42

Another good day over at CHF, ive been doing well recently with both CHF and PUR rising way more than i expected in the short term, all the while AAU is lagging. It feels like AAU'S day has been coming for years but never materializes! Few months to go hopefully!

[paul280i] 10/7/2020 08:00

I would imagine repayments on any loan to build a mine at Salinbas would be on the same terms (or better) than RR and projected for Tavsan where payments are not due to start until after the mine become productive and earning. Why would there be any different terms? We will have a big hitter on board with more clout.

[temujiin] 10/7/2020 07:45

Is Ozaltin or the new joint venture responsible for the Salinbas finance repayment
===========

I'd take the 'free carry' to mean they'll arrange finance for additional works including the mine, but AAU will have to pay their share and probably interest payments at some point, but yeah, details needs and probably will be in the final proposal.

[dixi] 10/7/2020 07:24

Is Ozaltin or the new joint venture responsible for the Salinbas finance repayment, it appears it is the new partners job to arrange this facility? That will make a massive difference to AAU's 23.5% share of distributable funds during the payback period. So many questions....

[temujiin] 10/7/2020 07:22

to me, this means ozaltin will put in $8m to get salinbas going
==============

Ozaltin will put in $8m, and likely Proccea will add $7m for their 'buy in' to Salinbas. $15m is a tidy sum and a lot of drilling can be done with that. But that money isn't just earmarked for drilling. It's to do

· Additional drilling and resource estimation

· Definitive Feasibility Study

· EIA and permitting

· Freehold land acquisition, public relations, new licences

Then a mine has to be built. It'll be many years, I'd guess 5, before gold comes out of Salinbas but that will happen quicker and cheaper with Ozaltin's abilities.

Personally I'd have preferred AAU keep Salinbas and spent $2-3m a year drilling, from some of the profits of owning 51% of RR, to increase it's value before selling or JV.

[lottsgold] 10/7/2020 07:22

I feel like this is the most likely scenario after reading the MOU RNS' repeatedly.

[sonoftherock] 10/7/2020 07:08

The Salinbas free carry (or not so free carry) is one area that I'm looking for some clarification. My best guess is a free carry to project sanction (when the big money / loan is needed) but we simply don't have the final details yet.

[gaddy88] 10/7/2020 06:36

I have enjoyed the diverse board the last few days. I do still believe the proposed deal is favourable but listening to why it may not be is appreciative. Different aspects, different opinions. I know the delays have been frustrating but realisation of true value is honestly not far away, the loins stir!

[dixi] 10/7/2020 06:23

Well I suppose the new JV will have to pay back the loan before any excess funds are distributed to each party. Is that pretty much the same thing as you suggest but by another name?

[konil] 10/7/2020 06:01

from the rns 25 nov 2019:
"Furthermore, the Proposed Partner will then inject US$8 million of equity into the Salinbas Project via an earn-in arrangement and organise the bank finance to enable this project to be brought into production."

to me, this means ozaltin will put in $8m to get salinbas going but when that runs out (and i don't know how far $8m will go to getting salinbas towards production) ozaltin will organize bank finance, but aau will be responsible for 23.5% of that debt. i don't see it as a free carry for aau on salinbas all the way to production.

just an observation which may be way off mark.

[trevor1234] 09/7/2020 20:40

This board would be the poorer if we all agreed.I don't have anyone on filter (which is a rarity as i do on most boards i follow) and appreciate booth side's of the discussion.As a lot have said we need to keep an open mind, we all think this is a great company and want to see the share price higher. Kerim has done a marvelous job so far and his geological expertise is unquestionable. But is he a deal maker we will have to wait and see

[bigglesbingham] 09/7/2020 19:36

Missed this post and I think it's an excellent one. You've hit the main points on the head well done. !

[soulsauce] 09/7/2020 19:31

😉👍