Ariana Resources PLC (AIM:AAU), via its wholly-owned Asgard Metals Fund, is to take an interest in Annamite Resources Holdings Pte Ltd, a Singapore-based company with copper and gold licences in the highly prolific mineral belts of Laos.
Asgard will be issued 2.5mln shares in Annamite, following a strategic investment of US$100,000, with additional shares to be earned as specified within a consultancy agreement up to an equivalent of US$200,000.
Under the terms of 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 around 3.8% of Annamite following the initial investment.
"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,” said Dr Kerim Sener, managing director of Ariana Resources.
“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, with 4.8mln ounces of gold and 1.6mln tonnes of copper and Phu Kham, with 3.4mln ounces of gold and 2.4mln tonnes of copper.”
Both these projects are currently in production.
Annamite's flagship project, Sokdee, is located on the exceptionally prospective Phu Kham-Loei trend.
"Sokdee demonstrates the potential for a large copper-gold porphyry system, which comprises a quartz-calcite stockwork vein zone which extends several hundred metres laterally,” added Sener.
“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 85 parts per billion gold anomaly extending 1,600 metres by 600 metres on the eastern side of the known porphyry. A focused drilling programme across the porphyry is due to commence imminently.”
Annamite plans to list in 2023.
"As evidenced by the IPO of Panther Metals Limited (ASX:PNT), 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,” said Sener.
“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."