Ariana Resources, the gold-silver exploration and development company with several projects in Turkey and a technology-metals subsidiary in Western Australia, announced on Friday that it has completed a joint venture agreement to vend a package of tenements to Dakota Minerals (DKO.A) as part of a broader deal involving Slipstream Resources Group. Through its 86% owned Australian subsidiary Asgard Metals, Ariana will vend 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 at which point Ariana will own approximately 8% of Dakota. In addition, Asgard will also benefit from up to 29.4M performance shares 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: 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. Given the potential for additional lithium resources in the project area and Arianna’s continued development of the Kiziltepe mine in Turkey, which is scheduled for completion in H2 2016, we maintain a Speculative Buy on the stock.
Beaufort Securities acts as corporate broker to Ariana Resources plc.
