Aurania Resources Renews Less Than Half Of Peru Concessions Amid Cash Crunch
Little money in the bank has evidently lead to Aurania Resources (TSXV: ARU) significantly shrinking its land holdings in the country of Peru. The firm this morning revealed that “select concessions” were renewed, which it blamed on a slow Peruvian application process.
In total, the company elected to renew just 130 of the initial 275 concessions it held before it began the annual process. The concessions reportedly cover 128,700 hectares and were selected for their “higher geological potential,” while some were selected simply because the application has been completion or most of the concessions were granted.
The company is now looking to conduct minor field work on the claims, which is to be used ahead of completing the initial technical report for the property. That report is to then be used to support either further field work or a “possible corporate transaction.”
The renewal came at a reported cost of US$296,000, which was funded via the firm securing a C$1.0 million loan from Keith Barron, whom is the CEO and Chairman of the company. The debt bears interest at 2% per annum, and contains a term of twelve months and one day upon notice from Barron. Additional funds are to be used for working capital and further exploration.
The company reported a cash position of $1.96 million as of March 31, 2022.
In dropping the other concessions, the company stated that they remained prospective for discoveries, but the annual costs could not be justified for a non-core asset.
The move follows the company at the end of May suggesting that it had “found” the Lost City of Gold in Ecuador, despite nothing actually having been found in terms of the supposed gold that exists, and the reference “city” not being located on the firms concessions in Ecuador.
Aurania Resources last traded at $0.78 on the TSX Venture.
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