Ariana Share Price (AAU)

From Ariana's articles

Subject to the provisions of the Acts and to the authority of the Company in general

meeting required by the Acts, the Board may offer, allot (with or without a right of

renunciation), issue or grant options over or otherwise deal with or dispose of shares in

the Company to such persons, at such time, for such consideration and generally on

such terms and conditions as the Board may determine.

So a general meeting resolution is all that is required.

Stranger,

That is an excellent summation and I agree this merger is great for Ariana, and this is needed as the S/P has languished for an eternity.

John - Just google - Does a Listed public Co in the UK need a Special Resolution to issue more shares?? or similar

This is the sort of response you will get.

"You generally need a resolution to issue new shares in a UK company. The Companies Act 2006 requires private companies to pass an ordinary resolution, while public companies need to pass a special resolution."

The presentation was interesting and although MdV was not very forthcoming KS did open up quite a bit. KS seems to believe that this will take Ariana to the next level.

How much is Dokwe worth?

Dokwe North has 1.2 million oz gold reserves which will be mined using open cast. The current projection is to mine 100,000 oz for 10 years which should give about $1,000 million of future profit. The mine will be opencast and relatively inexpensive to mine. The stripping ratio is about 6:1 which is 2.5 times less than the overburden at Kiziltepe. This is the profit that Ariana would receive if it developed the mine by itself, however I think that it might develop the mine as a JV and thus the profit would be lower. If there is a JV then Ariana needs to drive a harder bargain than it did with Ozaltin regarding Zenit.

Dokwe Central has had minimal exploration drilling but is currently showing a resource of 80,000 oz. There needs to be significant further exploration of Dokwe central.

At the corporate presentation in November 2023 Kerim stated that there is a Dokwe South (Shaba). Dokwe South is outcropping (with little or no overburden) and the Ariana team seemed very excited about it although no prospecting results are available. From the presentation on Thursday it can be seen that there is an extensive area where there are significant surface anomalies at Shaba.

Dokwe already has four times the reserves than Kiziltepe and Tavsan have and remember Ariana only has claim to only 23.5% of Zenit’s reserves.

It is of note that Ariana is attending the 121 Mining Investment in London. This connects mining companies with potential (institutional) investors. This ties in with the ASX listing. I very much suspect that Ariana will have a further share issue that will be sold to institutional investors and that this cash will be used to further the prospecting at Dokwe (Shaba?) with the intention of increasing the gold reserves substantially.

In the assessments below I am not discounting future profits as both the assessments are at current value.

All the calculations are rough and ready.

Assessment of what Rockover shareholders will get from the merger.

The Rockover share holders will get about 37.5% of the future profits that accrue to Ariana. This is the 23.5% of the profits of Zenit in the future. I am going to be quite generous with the assessment of the future profit.

Current projects Kiziltepe and Tavsan are forecast to produce 25,000 oz of gold for the next ten years. Thus the future profit at $2,000 per oz gold (assume $1000 per oz profit) is about $250 million of which Ariana will get about $59 million therefore Rockover shareholders will get about $22 million of future profits that would accrue to Ariana.

There are no other projects that are at the PFS stage in the current portfolio.

The other bits and pieces that Ariana owns may be worth about $6 million at present (although Ariana’s current shareholders think they are worth $0), so add $2 million giving a value of $28 million.

Rockover shareholders get 37.5% of Ariana’s current assets and future profit in exchange for Ariana shareholders getting 62.5% of Rockovers asset of Dokwe.

Assessment of what current Ariana shareholders will get from the merger.

Assuming the mine is built then current Ariana shareholders would get 62.5% of £1,000 million or $625 million of future profits. Even if there is subsequent dilution in the future (e.g a JV to fund the build costs or share issues to cover further prospecting costs) then I think that Ariana shareholders will still get a large amount of future profits from the deal.

My instinct is that this is a good deal for both parties, on paper it appears that Rockover could get a better price selling out to another miner right now. The directors of Rockover are very experienced, and I believe that they see that a future with Ariana will give the best long term returns through Ariana’s holdings in Dokwe, Zenit, Venus, WTR, etc.

I believe that this is a win-win for both parties depending on how Ariana funds the future exploration and the building of the mine and processing plant at Dokwe, and how much more gold there is at Dokwe. This deal would certainly make Ariana into a mid-tier gold miner.