Arian Silver rejoins AIM but branded 'walking dead'

Shares in Arian Silver Corporation tanked 85% after resuming trading on AIM with management repeating the claim that there is enough cash to last until February.

Loan note provider Quintana AGQ Holding has agreed a settlement after Arian defaulted in early November, with Quintana also waiving its right to demand $0.65m reimbursement but swiping the company's flagship San José project in Mexico.

Arian said it was in financing discussions as its net working capital of $0.41m are only expected to sustain the company to February 2016 when it will need to raise additional funds for its projects in Mexico and for general working capital purposes.

After giving up its Toronto listing on 1 December 2015, Arian added that it would no longer be publishing quarterly results.

With the company's "heart ripped out" by Quintana's taking of the San Jose project, analyst Yuen Low at Shore Capital said he saw Arian "as one of the walking dead, at least for the time being".

He added: "The problem, as we see it, is how Arian is to raise financing to keep going beyond that."

Arian's shares were suspended from AIM in October “pending clarification of the company’s financial position” after Quintana served notice to terminate the letter of intent announced in September.