TIDMAAU
RNS Number : 9807J
Ariana Resources PLC
03 May 2022
3 May 2022
AIM: AAU
ASGARD METALS FUND: INVESTMENT IN ANNAMITE RESOURCES
Ariana Resources plc ("Ariana" or the "Company"), an AIM-listed
mineral exploration and development company with gold mining
interests in Europe , is pleased to announce the third investment
of the Asgard Metals Fund ("the Fund" and a wholly-owned subsidiary
of Ariana), which is being developed as part of its proprietary
Project Catalyst Strategy.
Highlights:
-- Asgard Metals Fund ("Asgard") to take an interest in Annamite
Resources Holdings Pte. Ltd. ("Annamite"), a Singapore-based
company with copper and gold licences in the highly prolific
mineral belts of Laos.
-- 2.5 million shares in Annamite to be issued to Asgard
following a strategic investment of US$100,000 and additional
shares to be earned as specified within a Consultancy Agreement (up
to an equivalent of US$200,000).
-- Under the Consultancy Agreement, the Ariana team will provide
technical consulting services to Annamite's exploration efforts in
Laos for up to two years.
-- Asgard will own c. 3.8% of Annamite following the initial
investment, not including the additional shares earned through the
Consultancy Agreement.
Dr. Kerim Sener, Managing Director, Ariana Resources,
commented:
"Laos is located towards the eastern end of the continental
Tethyan Metallogenic Belt, which constitutes a series of
amalgamated metallogenic arcs across the Indochina Peninsula. In
more detail, the geology of Laos comprises two major trends of gold
mineralisation, each displaying multi-million-ounce potential.
Known deposits are porphyry-related or epithermal in character and
include Sepon (4.8Moz Au, 1.6Mt Cu) and Phu Kham (3.4Moz Au, 30Moz
Ag, 2.4Mt Cu), both currently in production. Annamite's flagship
project, the Sokdee Project, is located on the exceptionally
prospective Phu Kham-Loei Trend.
"Sokdee demonstrates the potential for a large Cu-Au porphyry
system, which comprises a quartz-calcite stockwork vein zone which
extends several hundred metres laterally. Within the vein zone,
mineralisation comprises chalcopyrite, bornite and molybdenite.
Despite historical work being limited in scope, the approximate
outline of the mineralised porphyry has been defined. The latest
work by Annamite has confirmed an 85ppb gold anomaly extending
1,600m x 600m on the eastern side of the known porphyry. A focused
drilling programme across the porphyry is due to commence
imminently.
"Longer term, Annamite is well positioned to identify other
opportunities across the Indochina Peninsula, which remains
substantially underexplored despite its significant known mineral
endowment. Potentially world-class gold and copper deposits exist
across several other countries in this region and Annamite is
investigating a number of opportunities, both in Laos and the wider
region. Annamite is pursuing a strategy to list on a reputable
stock exchange in 2023 to advance its project development
plans.
"As evidenced by the IPO of Panther Metals Limited, the Asgard
Metals Fund's first investment, in December 2021, Ariana is able to
realise value through the listing of the companies within the
Fund's portfolio. We intend to continue growing the Fund's
portfolio to provide Ariana shareholders with further exposure to
exciting, high-value potential projects across the Eastern
Hemisphere."
Didier Fohlen, Chief Executive Officer, Annamite Resources,
commented:
"We are delighted to receive a significant investment from the
Asgard Metals Fund. It brings the technical support necessary for a
junior exploration company beginning its exploration activities, as
well as additional funds to advance our Sokdee Project. Our
flagship asset is the Namthom gold-copper porphyry, which sits in
the middle of the 50km(2) Sokdee license granted by the Government
of Laos. Annamite's business model as a Project Developer in Laos
fits well with Asgard's Project Catalyst Strategy.
"During the last month, Annamite has successfully completed
infill soil sampling at the Namthom prospect and the gold and
multi-element data received will be assessed in due course. In
parallel, our geologists have completed additional geological
mapping and regional soil sampling on an 800m by 400m grid across
the tenement. Anomalies detected by the regional soil sampling
programme will be infill sampled on smaller grids. Annamite plans
to commence a 1,500-1,700m diamond drilling programme in early
May.
"I have known Kerim and members of his team for many years, and
I feel the fit between our two companies is going to add a lot our
value for our shareholders. I want to thank Ariana's Board for
their support."
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").
Contacts:
Ariana Resources plc Tel: +44 (0) 20 3476 2080
Michael de Villiers, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited Tel: +44 (0) 20 7628 3396
Roland Cornish / Felicity Geidt
Panmure Gordon (UK) Limited Tel: +44 (0) 20 7886 2500
John Prior / Hugh Rich / Atholl
Tweedie
Yellow Jersey PR Limited Tel: +44 (0) 20 3004 9512
Dominic Barretto / Henry Wilkinson arianaresources@yellowjerseypr.com
Editors' Notes:
About Annamite Resources Limited:
Annamite Resources Holdings Pte. Ltd. is a Singapore-registered
explorer targeting large copper and gold discoveries in the
underexplored yet prolific mineral belts of the Indochina Peninsula
(Figure 1). The company is focused on highly prospective belts
where it aims to exploit a gap in discovery brought about by a lack
of modern exploration within a region containing several Tier 1
discoveries. Annamite's founders have worked with junior explorers
to major miners in technical, management and financing capacities,
including Gold Fields, Lydian International and Tethyan Resources,
and in Laos with Kingsgate Consolidated and Lane Xang Minerals.
Further information on Annamite is available via their website:
https://www.annamite-resources.com , from which the information set
out herein is derived.
About Laos:
Laos has the strong feature of being under-explored, with many
opportunities on projects that have been chronically under-funded
and/or had poor quality technical work conducted. The result is
that there are few existing, profitable mines in a country with
excellent geological potential. Annamite's business model aims to
take advantage of this situation and become a Project Developer by
sourcing and acquiring drill-ready or near drill-ready, valuable
assets which can be moved up the value chain within two to three
years to a resource estimate, followed soon after with a
Preliminary Economic Assessment (PEA). The project may then be
progressed further to a pre-feasibility or feasibility study.
The under-explored character of Laos is in part the result of
conflict during the 20th century, but also a lack of exploration
expertise within the country, coupled with a regulatory system that
has been difficult for international companies to navigate in the
past. However, the Laotian Government has recognised the need to
revitalise the sector, and a new law on minerals was enacted in
2017. A strong local presence, local partnerships and knowledge of
the country are essential for success and Annamite has established
a local presence in the last three years, based on its knowledge
and country network which it has built up over time. Additionally,
major Lao investors are included among the main shareholders of
Annamite. The exploration potential of Laos, commodity price
expectations, and capital availability are now all favourable for
developing a well-capitalised exploration company focused on Laos
and, potentially in the future, on neighbouring countries in the
Indochina region.
http://www.rns-pdf.londonstockexchange.com/rns/9807J_1-2022-5-2.pdf
Figure 1: Annamite project locations in Laos and the major
mineral trends, showing the location of known large deposits. The
licenced areas under agreements with Annamite are shown in
pink.
Financial Information
For the year ended 30 April 2021, Annamite reported unaudited
net assets of US$447,285. Asgard will own approximately 3.8% of
Annamite following the initial investment, not including the
additional shares earned through the Consultancy Agreement.
About Ariana Resources:
Ariana is an AIM-listed mineral exploration and development
company with an exceptional track-record of creating value for its
shareholders through its interests in active mining projects and
investments in exploration companies. Its current interests include
gold production in Turkey and copper-gold exploration and
development projects in Cyprus and Kosovo.
The Company holds a 23.5% interest in Zenit Madencilik San. ve
Tic. A.S., a joint venture with Ozaltin Holding A.S. and Proccea
Construction Co. in Turkey, which contains a depleted total of c.
2.1 million ounces of gold and other metals (as at February 2022).
The joint venture comprises the Kiziltepe Mine and the Tavsan and
Salinbas projects.
The Kiziltepe Gold-Silver Mine is located in western Turkey and
contains a depleted JORC Measured, Indicated and Inferred Resource
of 222,000 ounces gold and 3.8 million ounces silver (as at
February 2022). The mine has been in profitable production since
2017 and is expected to produce at a rate of c.20,000 ounces of
gold per annum to at least the mid-2020s. A Net Smelter Return
("NSR") royalty of 2.5% on production is being paid to
Franco-Nevada Corporation.
The Tavsan Gold Project is located in western Turkey and
contains a JORC Measured, Indicated and Inferred Resource of
253,000 ounces gold and 0.7 million ounces silver (as at June
2020). Following the approval of its Environmental Impact
Assessment, resulting permitting work is ongoing to develop Tavsan
as the second joint venture gold mining operation in Turkey. A NSR
royalty of up to 2% on future production is payable to Sandstorm
Gold.
The Salinbas Gold Project is located in north-eastern Turkey and
contains a JORC Measured, Indicated and Inferred Resource of 1.5
million ounces of gold (as at July 2020). It is located within the
multi-million ounce Artvin Goldfield, which contains the "Hot Gold
Corridor" comprising several significant gold-copper projects,
including the 4 million ounce Hot Maden project, which lies 16km to
the south of Salinbas. A NSR royalty of up to 2% on future
production is payable to Eldorado Gold Corporation.
Ariana owns 100% of Australia-registered Asgard Metals Fund
("Asgard"), as part of the Company's proprietary Project Catalyst
Strategy. The Fund is focused on investments in high-value
potential, discovery-stage mineral exploration companies located
across the Eastern Hemisphere and within easy reach of Ariana's
operational hubs in Australia, Turkey and the UK.
Ariana owns 75% of UK-registered Western Tethyan Resources Ltd
("WTR"), which operates across south-eastern Europe and is based in
Pristina, Republic of Kosovo. The company is targeting its
exploration on major copper-gold deposits across the
porphyry-epithermal transition. WTR is being funded through a
five-year Alliance Agreement with Newmont Corporation
(www.newmont.com).
Ariana owns 50% of UK-registered Venus Minerals Ltd ("Venus"),
which is focused on the exploration and development of copper-gold
assets in Cyprus which contain a combined JORC Indicated and
Inferred Resource of 17Mt @ 0.45% to 1.10% copper (excluding
additional gold, silver and zinc), in addition to pursuing a
separate 50:50 JV on Hellenic Apliki Mines, which owns the Hellenic
SX-EW processing plant and the 11Mt @ 0.25% to 0.69% Cu Apliki mine
development project.
Panmure Gordon (UK) Limited is broker to the Company and
Beaumont Cornish Limited is the Company's Nominated Adviser and
Broker.
For further information on Ariana you are invited to visit the
Company's website at www.arianaresources.com .
Ends.
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END
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