PERTH (miningweekly.com) – Junior gold explorer Ardiden has agreed to an exclusive option with Great Northern Lithium to potentially sell 80% of its lithium portfolio in a deal worth A$8.7-million.
“Ardiden has been actively evaluating strategic options to best realise the full potential of its lithium assets. The prospect of selling 80% of Ardiden’s lithium portfolio to a new, lithium-focused entity provides an opportunity to accelerate exploration and development of these quality assets within the booming battery metals sector,” said Ardiden nonexecutive chairperson Neil Hackett.
Ardiden holds three lithium projects in north-west Ontario, including the Seymour Lake deposit, which has an estimated resource of 4.8-million tonnes at 1.25% lithium oxide and 186-million parts per million tantalum pentoxide.
“These assets are strategically located near the US border, with easy access to existing infrastructure. If they exercise the option, teaming with experienced lithium developers, while retaining a 20% free carry, enables Ardiden to unlock value for shareholders, while retaining some upside exposure to the battery metals market,” said Hackett.
Ardiden will be paid a A$200 000 fee, allowing Great Northern a 60-day period in which to conduct a due diligence.
If the due diligence is positive, Ardiden would receive A$1.5-million as an up-front cash payment, and a further A$7-million in trailing cash installments in two equal tranches at 9 months and 18 months from completion.
“Monetising 80% of our lithium portfolio provides exploration capital to Ardiden, which will be deployed at its highly prospective package of gold prospects at the Pickle Lake gold project,” said CEO and MD Robin Longley.