Ardiden to Sell Down Canadian Lithium Assets
THE BOURSE WHISPERER: Ardiden (ASX: ADV) informed the market of the execution of a binding Tenement Option and Acquisition Terms Sheet granting an option to Great Northern Lithium to buy 80 per cent of Ardiden’s lithium portfolio.
Total consideration for the 80 per cent stake is up to $8.7 million that, should it be exercised, completion of the acquisition will be subject to conditions, including shareholder and regulatory approvals.
Ardiden would retain a 20 per cent free-carry to completion of either a Bankable Feasibility Study (BFS) or Decision to Mine.
“Ardiden has been actively evaluating strategic options to best realise the full potential of its lithium assets,” Ardiden non-executive chairman Neil Hackett said in the company’s ASX announcement.
“The prospect of selling 80 per cent 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.
“These assets are strategically located near the USA border, with easy access to existing infrastructure.
“If they exercise the option, teaming with experienced lithium developers, while retaining a 20 per cent free carry, enables Ardiden to unlock value for shareholders, while retaining some upside exposure to the battery metals market.”
Great Northern Lithium is a newly formed Australian company led by an experienced team with significant global lithium exploration, mining, production, and offtake expertise that is focussed on exploring and developing hard rock lithium deposits in North America.
The deal will enable Ardiden to focus on gold exploration at its Pickle Lake gold project in north-west Ontario, Canada.
“Monetising 80 per cent 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,” Ardiden managing director and CEO Rob Longley said.
“GNL will benefit from our in-country experience and existing relationships with First Nation Communities as well as bringing their own expertise in management, marketing, evaluation and development of these strategically-located spodumene-hosted lithium deposits in a booming North American region for critical metal project development.”
TO READ THE FULL ANNOUNCEMENT: CLICK HERE
Email: info@ardiden.com.au
Web: www.ardiden.com.au
