Ariana Resources plc trough its 86%-owned Australian subsidiary, Asgard Metals Pty. Ltd., has completed the sale of a package of tenements in the Pilbara region of Western Australia to Dakota Minerals Limited (ASX:DKO), as announced on 18 December 2015.
Highlights:
— Completion of the transaction has occurred following the satisfaction of all conditions, including grant of the core tenement, Dakota shareholder approval for the transaction and a A$3.6 million capital raising by Dakota.
— Completion of the initial cash payment to Asgard of A$147,000 and 22,500,000 fully paid ordinary shares in Dakota (currently valued at A$1.2 million); Ariana now owns approximately 8% of Dakota.
— Asgard to benefit from a fixed consulting fee of A$98,000 over the course of 12 months and up to 29,400,000 performance shares which are to be issued on the achievement of certain project milestones.
— Asgard exploration model for lithium is being applied to identify new project opportunities across other geological provinces worldwide, including those in Turkey.
Dr. Kerim Sener, Managing Director, commented: “The completion of our transaction with Dakota is a significant boost to our emerging interests in technology-metals and proves our exploration targeting capabilities in parallel with our ability to rapidly commercialise new project opportunities outside of Turkey. We are continuing our efforts to identify further projects in the technology-metals space with a special focus on lithium at this time.”
Ariana’s Strategy
Asgard has been pursuing a strategy of commodity diversification on behalf of Ariana, with a special focus on technology-commodities, particularly those that may be used in renewable energy applications. Commodities of particular interest to Asgard currently include lithium and antimony, which are found in association with certain gold mineralisation systems in both Turkey and Western Australia, among other gold-provinces worldwide. Asgard has developed an exploration model specifically for lithium, which it is applying to other regions with the aim of identifying new exploration areas for future licence acquisition.
Summary of Agreement
Asgard sold its interests in its tenements at Pilgangoora in the Pilbara region of Western Australia to Dakota Minerals Limited (ASX:DKO). In consideration for this, Asgard was paid A$147,000 in cash and was issued with 22,500,000 fully paid ordinary shares in Dakota by completion. In addition, Asgard will benefit from the following performance share payments:
— 14,700,000 shares upon an Inferred Mineral Resource of 5 Mt at 1.2% Li(2) O being identified on any of the tenements and announced to the ASX by Dakota in accordance with the requirements of the JORC Code; and
— 14,700,000 shares upon an Inferred Mineral Resource of 15 Mt at 1.2% Li(2) O being identified on any of the tenements and announced to the ASX by Dakota in accordance with the requirements of the JORC Code.
Asgard has entered in to a consultancy services agreement with Dakota for a fixed term of 12 months to provide geological and exploration consultancy services for the introduction of new projects to Dakota. Consideration for the consultancy services agreement will be A$98,000 payable per annum in monthly instalments to Asgard.
Dakota has completed a placement of A$3.6 million in two tranches underwritten by Argonaut Capital Limited. Tranche 1 for A$524,490 before expenses was raised without the requirement for shareholder approval. Tranche 2 required shareholder approval and raised A$3,075,510 before expenses. The funds raised were applied in part to fund the acquisition of the tenements and to commit A$700,000 on their exploration.
