Ariana Resources, the gold-silver exploration and development company with several projects in Turkey and a technology-metals subsidiary in Western Australia, announced yesterday that it has completed the sale of a package of tenements (as previously announced on 18 December 2015) in the Pilbara region of Western Australia to Dakota Minerals. Through its 86% owned Australian subsidiary Asgard Metals, Ariana has sold six tenements containing part of an extensive lithium-tantalum bearing pegmatite dyke swarm for an initial cash payment of A$147,000 and 22.5M shares of Dakota representing approximately 8% of Dakota. In addition, Ariana’s subsidiary will benefit from up to 29.4M performance share payments upon achievement of certain project milestones. Dakota will also commit to A$700,000 towards exploration on the tenements and will use Asgard’s exploration model for lithium for a consulting fee of A$98,000 over the course of 12 months.
Beaufort Securities view on Ariana Resources: We are supportive the above transaction which allows Ariana and its subsidiary to monetise its current land holdings and maintain an interest in any potential new lithium discoveries. The project area is located in an extensive pegmatite dyke swarm that hosts several recently discovered lithium and tantalum resources. With the completion of the above transaction and given the potential for additional lithium resources in the area as well as Arianna’s continued development of the Kiziltepe mine in Turkey, which is scheduled for production in H2 2016, we maintain a Speculative Buy rating on the stock.
Beaufort Securities acts as corporate broker to Ariana Resources plc
