www.marianaresources.com
Mariana Resources Ltd is a Guernsey incorporated investment holding company established to acquire potentially large or high value gold and copper-gold prospects in Chile, Argentina and other selected parts of South America.
The Group's strategy is to seek underexplored areas with potential for high grade polymetallic-gold epithermal/skarn mineralisation. Mariana brings to bear considerable field experience in this regard and early recognition of critical geological features is an important aspect.The Mariana Team brings together over 150 years of combined industry experience, with a specific South American focus.
Mariana Resources' shares up 20 per cent on news of £5.4 million investment from AngloGold Ashanti
Shares in South America-focused precious metals miner Mariana Resources (LON:MARL,TSE:MRY) were up by more than 20 per cent this morning after the firm announced AngloGold Ashanti was taking a stake in it.
Mariana is receiving a £5.4 million strategic investment by AngloGold Ashanti to help Mariana advance its 100 per cent-owned flagship Las Calandrias gold-silver project and its Sierra Blanca project in Argentina.
Analysts who follow the firm welcomed the news, while the shares gained 22.35 per cent to reach 10.4 pence each in late-morning trading today.
In a private placement, Mariana will receive gross proceeds of £5.4 million from AngloGold in return for 45 million shares at 12 pence per share – a 41-per cent premium to Mariana’s closing price of 8.5 pence per share last night. This means that AngloGold will gain a 19.9 per cent stake in the business.
The terms of the deal state that Mariana will commit to use at least 75 per cent of the new funds to develop its various low-sulphidation epithermal gold-silver deposits located in the Deseado Massif, Santa Cruz Province in Patagonia, Argentina. Mariana’s Las Calandrias project in the province is estimated to have a preliminary resource of 519,000 ounces of gold equivalent
“We view the transaction with AngloGold, one of the world’s leading gold producers, as a major endorsement of Las Calandrias Project and its potential to develop into a top tier project with a significant mineral endowment,” said Mariana’s executive chairman, John Horsburgh.
“This alliance further serves to support our belief in the prospectivity of Mariana’s extensive 160,000-hectare land position in Santa Cruz, which includes our second gold-silver discovery at the Sierra Blanca Project. The region contains a number of significant gold-silver mines and projects including AngloGold's Cerro Vanguardia operation.”
Broker Collins Stewart described the news as “a very positive development for Mariana”. Meanwhile, house broker FinnCap noted that the deal takes Mariana’s cash position to around £9 million which it said would be “sufficient to fund work for at least the next 18 months at the recent burn rate”.
Finncap added that it assumes that Mariana will now be encouraged to search for new targets within its 160,000-hectare exploration portfolio. “AngloGold Ashanti clearly thinks that, somewhere within the portfolio, there lies the potential for a multi-million ounce deposit,” said the broker.
“A technical advisory committee is to be established to monitor progress and add technical input with respect to Mariana’s various projects in Argentina.”
Shore Capital commented: “All in all, today’s news is a significant endorsement of the prospectivity of Las Calandrias and Mariana’s wider land holdings in Santa Cruz.”
