In a Sept. 28 research note, Noble Capital Markets analyst Mark Reichman reported that new drill results show Aurania Resources Ltd. (ARU:TSX.V; AUIAF:OTCQB) is having success in locating the higher grade parts of the mineralized system at its Lost Cities–Cutucu project. The company is exploring four priority targets on this property in Ecuador: Tiria-Shimpia, Tsenken N1, Tatasham, and Latorre C.
Results are in for hole SH-003, and they are high-grade. Aurania drilled this hole in the Tiria-Shimpia silver-zinc target about 2 kilometers to the north of where it placed holes SH-001 and SH-002.
Intercepts from hole SH-003 include 3.5 grams per tonne (3.5 g/t) of silver and 0.6% zinc over 29 meters (29m), including 10.5 g/t of silver and 2.5% zinc over 5m. The hole intersected the top of a brecciated limestone layer at 35m downhole.
To date, Aurania has drilled three holes over 1,018m at Tiria-Shimpia.
As for Tsenken N1, the minerals explorer just completed hole TSN1-007 and began drilling TSN1-008 there.
Regarding the company's overall drill campaign at Lost Cities–Cutucu, Reichman noted, "In the near term, we think Aurania will continue to operate two drill rigs and maintain some flexibility in terms of the drilling sequence."
To fund its continuing exploration and drill work, Aurania is pursuing a nonbrokered private placement for gross proceeds of up to CA$5 million, Reichman indicated. In this financing, which may consist of more than one tranche, up to 2,083,334 units are being sold at CA$2.40 apiece.
Each unit consists of one common share and one half-warrant. In the 24 months after the financing closes, each whole warrant can be converted into one common share for CA$3.
"The shares have traded well above CA$3 per unit, and the warrants may be viewed as a call on successful outcomes resulting from Aurania's exploration and drilling program," Reichman wrote.
Noble has an Outperform rating and a US$3.50 per share target price on Aurania, the stock of which is trading now at about US$1.78 per share.
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Aurania Resources Ltd. Click here for important disclosures about sponsor fees. An affiliate of Streetwise Reports is conducting a digital media marketing campaign for this article on behalf of Aurania Resources Ltd. Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Aurania Resources Ltd., a company mentioned in this article.
Disclosures from Noble Capital Markets, Aurania Resources Ltd., Sept. 28, 2021
Any opinions expressed herein are subject to change without notice. All information provided herein is based on public and non-public information believed to be accurate and reliable, but is not necessarily complete and cannot be guaranteed. No judgment is hereby expressed or should be implied as to the suitability of any security described herein for any specific investor or any specific investment portfolio. The decision to undertake any investment regarding the security mentioned herein should be made by each reader of this publication based on its own appraisal of the implications and risks of such decision.
This publication is intended for information purposes only and shall not constitute an offer to buy/sell or the solicitation of an offer to buy/sell any security mentioned in this report, nor shall there be any sale of the security herein in any state or domicile in which said offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or domicile. This publication and all information, comments, statements or opinions contained or expressed herein are applicable only as of the date of this publication and subject to change without prior notice. Past performance is not indicative of future results.
Noble accepts no liability for loss arising from the use of the material in this report, except that this exclusion of liability does not apply to the extent that such liability arises under specific statutes or regulations applicable to Noble. This report is not to be relied upon as a substitute for the exercising of independent judgement. Noble may have published, and may in the future publish, other research reports that are inconsistent with, and reach different conclusions from, the information provided in this report. Noble is under no obligation to bring to the attention of any recipient of this report, any past or future reports. Investors should only consider this report as single factor in making an investment decision.
Noble seeks to update its research as appropriate, but may be unable to do so based upon various regulatory constraints. Research reports are not published at regular intervals; publication times and dates are based upon the analyst's judgement. Noble professionals including traders, salespeople and investment bankers may provide written or oral market commentary, or discuss trading strategies to Noble clients and the Noble proprietary trading desk that reflect opinions that are contrary to the opinions expressed in this research report.
The majority of companies that Noble follows are emerging growth companies. Securities in these companies involve a higher degree of risk and more volatility than the securities of more established companies. The securities discussed in Noble research reports may not be suitable for some investors and as such, investors must take extra care and make their own determination of the appropriateness of an investment based upon risk tolerance, investment objectives and financial status.
Company Specific Disclosures: The following disclosures relate to relationships between Noble and the company (the "Company") covered by the Noble Research Division and referred to in this research report.
The Company in this report is a participant in the Company Sponsored Research Program ("CSRP"); Noble receives compensation from the Company for such participation. No part of the CSRP compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed by the analyst in this research report.
Noble has arranged non-deal roadshow(s) with investors in the last 12 months. The Company has attended Noble investor conference(s) in the last 12 months.
Noble intends to seek compensation for investment banking services and non-investment banking services (securities and non-securities related) within the next 3 months.
Noble is not a market maker in the Company.