AUIAF - Aurania Resources (AUIAF)(ARU:CA) - Refocused Strategy Enhances Likelihood of Successful Outcomes; Rating Upgraded

Narrowed focus on epithermal gold and porphyry copper targets. Exploration to date has identified numerous targets on the company's Lost Cities project in Ecuador, including 1) epithermal gold, 2) porphyry copper, 3) sediment-hosted copper-silver and 4) carbonate replacement silver-zinc. Following an internal review, Aurania’s board approved a strategy focused on core mineral concessions that contain epithermal gold and porphyry copper targets that offer the highest risk-adjusted reward potential. Aurania will explore joint ventures and partnerships to advance non-core mineral concessions that encompass sediment-hosted copper-silver and silver-zinc.Equity financing. Aurania intends to raise up to C$1.5 million through a private placement of up to 2,142,857 units at a price of C$0.70 per unit. Aurania’s Chairman and CEO, Dr. Keith Barron, has committed C$400,000 to the offering. Each unit will consist of one common share and one share purchase warrant which may be exercised to purchase one common share at a price of C$1.25 for a period of 24 months after the close of the offering. The company intends to use the net proceeds from the offering to maintain its annual mineral concessions in Ecuador and to conduct further exploration and target refinement at the Awacha porphyry copper target and the Kuri-Yawi and Kuripan epithermal gold targets.Rating upgraded to Outperform. We have upgraded our investment rating to Outperform from Market Perform and established a price target of US$1.25 or C$1.60 per share based on our view that the company’s refined strategy could enhance the likelihood of discovery and create value for shareholders. We think the company’s approach will be more capital efficient and our valuation and price target assumes a lower level of exploration expenditures and narrower focus. Read More >>