PERTH (miningweekly.com) – Junior Ardiden has entered into a binding agreement with fellow listed Green Technology Metals to sell its remaining 20% interest in the Canadian lithium joint venture (JV) for up to A$18.5-million.

The lithium JV covers the Seymour Lake, Root Lake and Wisa Lake assets in Ontario.

Ardiden maintained a 20% free-carried interest in the JV with Green Technology Metals, until the earlier of completion of a bankable feasibility study or a decision to mine by Green Technology Metals.

The consideration for the purchase of its remaining interest will comprise of A$16-million cash, payable upon completion, and a milestone payment of a further A$2.5-million cash, payable upon Joint Ore Reserves Committee-compliant mineral resources of more than 20-million tonnes being defined across the projects, or in the event of Green Technology Metals undertaking a change of control transaction.

Ardiden chairperson Bruce McFadzean said on Monday that the company was pleased with the transaction, which would see Ardiden emerge as a well-capitalised entity with the funding required to aggressively explore its highly prospective Pickle Lake gold project.

“The transaction is non-dilutive for existing Ardiden shareholders and recognises the value of our assets relative to our recent trading history. Ardiden will retain material exposure to Green Technology Metals via Ardiden’s near 13-million shares in Green Technology Metals and the potential for the deferred consideration.”

Green Technology Metals CEO Luke Cox said that to have secured full ownership of the company’s key assets, including the Seymour mine development, further cemented the company’s strategic industry position, and removed the implicit economic burden of a free-carried minority interest over the assets.

“It is full steam ahead at Green Technology Metals. We are drilling intensively at both Seymour and our Root project. We are also undertaking multiple metallurgical testwork programs, alongside all our environmental and permitting baseline work, as we rapidly progress the requisite PEA workstreams for Seymour. Finally, we remain attuned to potential further project and/or strategic transactional opportunities within Ontario, and more broadly.”

“Key outcomes from these activities are set to flow over coming months, including ongoing drilling and assay results, a further resource update at Seymour, a maiden resource estimate at Root, and scheduled completion of the Seymour PEA, including downstream facility development, in the first half of 2023. All of this is set to occur against an ongoing backdrop of aggressive governmental and end-user incentivisation of new North America domiciled lithium supply sources, including via the recent game-changing Inflation Reduction Act 2022 legislation in the US.”