Aris Gold (TSX: ARIS) or ALLXF on the U.S. OTCQX recently raised CAD$85 million in a private placement priced at $2.25 per share. The incoming ARIS board nominees, management and Strategic Advisor Frank Giustra personally participated in the offering for an aggregate of CAD$38 million. ARIS is currently trading for only $2.35 per share (near their investment price).
After the recent release of subscription receipts ARIS now has 137.58 million shares outstanding. The U.S. OTCQX symbol ALLXF is currently trading for only $1.88 per share for a market cap of US$258.65 million. The company has a large cash position of US$174.1 million with US$81.74 million in long-term debt for a net cash position of US$92.36 million and an enterprise value of only US$166.29 million. ARIS will soon be closing on a streaming deal with Wheaton Precious Metals that will provide the company with an additional US$110 million in cash!
In 2020, ARIS produced 23,832 oz of gold from its Marmato Upper Mine in Colombia that has been operating since 1991. ARIS is about to construct the Marmato Lower Mine which will increase processing capacity to 5,500 tonnes per day (up from 1,200 tonnes per day today). When construction is complete ARIS will produce 165,000 oz of gold per year!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA has received compensation from ARIS of USD$50,000 cash for a six-month marketing contract. This message is meant for informational and educational purposes only and does not provide investment advice.
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