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About
Name: Awalé Resources Limited.
Tickers: 🇨🇦 ARIC 🇺🇸 AWLRF 🇩🇪 ARIC
Commodity: Copper, Gold
Jurisdiction: Ivory Coast
Stage: Exploration
Market Cap: $56M CAD
Awalé is a diligent and systematic mineral exploration company focused on the discovery of large high-grade gold and copper-gold deposits. The Company undertakes exploration activities in the underexplored parts of Côte d’Ivoire. Awalé’s exploration success to date has culminated in a fully funded earn-in Joint Venture with Newmont Ventures Limited covering one permit and one application (the “Odienné Project JV”), where four significant gold and gold-copper-silver-molybdenum discoveries have been made.
The Odienné Project JV is located within Awalé’s greater Odienné Copper-Gold Project (the “Project”) which consists of 2,462 km2 of tenure in the Northwest of Côte d’Ivoire. The Odienné Project JV consists of 400 km2 of granted tenure and 400km2 under application, or approximately 30% of Awalé’s total holding in the district. The Company announced 26 g/t gold over 57 m, including 45.7 g/t gold over 32 m from 165 m downhole at the Charger Prospect and the discoveries have significant scope for growth and resource development. The Project has multiple pipeline prospects that have similar geochemical fingerprints to Iron Oxide Copper Gold (IOCG) and intrusive related mineral systems that offers significant potential for district scale discoveries.
For further information, please refer to the Company’s disclosure record on SEDAR+ at www.sedarplus.ca.
Or read more about Awale Resources at https://awaleresources.ca/.
Interview
Interview summary
Antonio and Andrew discussed financing concerns, board restructuring, and exploration strategies. They addressed personnel changes, emphasizing quality control, and outlined timelines for potential mining projects.
Financing Decisions and Insider Selling
Antonio and Andrew discussed the recent financing topic that had sparked dissatisfaction among many shareholders. Andrew expressed his belief that the financing, despite the low share price, would provide opportunities to secure the company’s future by exploring regional grounds and drilling. Antonio questioned the decision to raise money at 62 cents per share, but Andrew clarified that it was the best offer they received. Antonio also raised concerns about recent insider selling by Andrew and two directors, which Andrew clarified was due to expiring warrants and he converted them all to maintain his net position as CEO.
Company Restructuring, Board Changes, and Finances
Andrew and Antonio discussed the recent restructuring of the company’s board, expressing their support for the new structure and the addition of two new members, Anthony Moreau and Karl Akuesson. Andrew gave a positive outlook on the company’s future, highlighting the strong finance, capable board, and aligned management team. There was also a discussion about local holdings, a joint venture agreement, and a buyout agreement with a local company, which Andrew clarified was initiated by the local team. Concerns were raised about the amount of money raised during the restructuring, and Andrew detailed the budget and strategy for implementing a regional geochemistry project. Financial figures related to their joint venture were also discussed, with Andrew stating that Newmont had initially invested between 1.2 to 1.3 million US dollars, and by the start of the current year, an additional 5 million US dollars were spent.
Geochemical Strategy and Project Priorities
Antonio and Andrew discussed their strategy for geochemical exploration, focusing on targeting strong geological features rather than chasing geochemical anomalies. Andrew highlighted the ongoing drilling plans for the 2024, 2025 to 2026 field season and the importance of building belief within the team and among investors. Despite recent financing issues Andrew expressed confidence in their projects, particularly the Empire and Charger discoveries.
Company Focus, Staffing, and Transition Plans
Andrew discussed the company’s focus on the Odienné district, plans for hiring a new VP, and an upcoming transition into a different corporate position. He also highlighted concerns about the current shared CFO’s workload and his own temporary role as CEO. He shared his intentions to recruit the necessary personnel for future success and clarified that potential changes in board and management, including salary increases, had not been considered. Lastly, he addressed the company’s staffing plans, emphasizing the importance of quality control and the strong relationship with the town of Odienné.
Project Updates
Andrew discussed his plans to invest the $10 million that Newmont is commiting to the Odienné project. He explained that the buyback option in the joint feature agreement would decrease their ownership from 65% to 51%, and further dilution could occur if Newmont chose not to invest. Despite NEM’s decision not to participate in the recent financing, Andrew expressed satisfaction with their institutional investor base and financing. He also provided updates on project work activities, including analysis of recent samples from the charger project, compilation of geophysics results, and plans for further exploration. The timeline for the discovery and development of a mine was estimated to be 10 to 15 years, and further interviews were agreed upon to keep each other updated on progress.
