THE BOURSE WHISPERER: Ardiden Limited (ASX: ADV) has signed a non-binding Memorandum of Understanding (MoU) with its Canadian neighbour, lithium developer, Rock Tech Lithium Inc (TSX-V: RCK).
Ardiden announced the companies have agreed to combine efforts to work towards developing a lithium project that combines hard rock Spodumene mineral resources at Ardiden’s Seymour Lake and at Rock Tech’s Georgia Lake lithium projects in northwest Ontario.
“The projects have multiple beneficial synergies with the deposits being located proximal to railway, power supply and close to the regional mining and shipping centre at Thunder Bay,” Ardiden said in its ASX announcement.
Ardiden had previously declared its intentions to secure a partner or alliance for value extraction from the company’s 100 per cent-owned Seymour Lake project and to take advantage of the strategic advantages of this, and its other lithium holdings in Ontario.
The agreement will see Ardiden and Rock Tech develop a project to potentially supply spodumene concentrate at 6 to 7 per cent lithium oxide (Li2O), initially from a combination of the Seymour Lake and Georgia Lake projects.
Presently, within north-western Ontario, there are four other lithium projects, each in various stages of development in addition to the Ardiden and Rock Tech’s assets.
The two companies believe Seymour Lake and Georgia Lake are in an advantageous position with quality resources making the combination a logical outcome.
As such, Ardiden and Rock Tech have agreed to work together to gain a ‘First Mover’ advantage in this strategic North American region.
In March 2019, Ardiden announced an upgraded JORC 2012-compliant Mineral Resource at Seymour Lake of 4.83 million tonnes at 1.25 per cent Li2O and 186ppm tantalum pentoxide (Ta2O5).
In June 2018, Rock Tech released an NI 43-101-compliant resource estimate that included 6.58 million tonnes Measured and Indicated resources.
Additionally, 6.72 million tonnes of Inferred resources were estimated within this area.