AUIAF - Aurania Resources (AUIAF)(ARU:CA) - Pondering the Possibilities

Management is on location in Ecuador. Following the resignation of Dr. Richard Spencer, Dr. Keith Barron, assumed the role of President and is now Chairman, President, and Chief Executive Officer. He is presently in Ecuador and is leading the company’s activities. While the resignation of Dr. Spencer is a setback, Dr. Barron is the guiding force behind the company and owner of 39% of the outstanding shares.Exploration continues near the Awacha target. During the next month, Aurania will be conducting exploration north of the Awacha porphyry copper target. Recall that exploration teams returned to the area in early January to refine porphyry targets. At Awacha, soil sampling and field surveys are in progress. Mobile Magnetotellurics (MobileMT) geophysics revealed a buried conductive body greater than 4 by 5 kilometers in size.Concession renewals. In the company’s third quarter filings, Aurania indicated that it expects to reduce the number of concessions in Ecuador by March 2022. Additionally, the company is considering alternatives to advance its Vicus project in Peru, including potential joint venture opportunities. We might expect this to happen before mid-year 2022 when concession payments in Peru are due.Rating is Market Perform. Aurania has indicated that its Board is studying all options to maximize value for shareholders. We believe Aurania’s high-value portfolio offers significant optionality. We think the Board may consider: 1) the potential sale or joint venture of certain concessions, 2) dropping some concessions, and 3) maintaining those with the most promise for an immediate discovery along with expansion potential. Another possibility would be a wholesale merger with another mining company for cash and/or more likely shares. In this manner, a company with greater financial resources could accelerate development of the Lost Cities project and Aurania shareholders could maintain exposure to the project. Read More >>