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Highlights
- Raiden exercised the Upfront Option to buy 100% of the LCT rights at Arrow Project from Arrow Minerals
- As per the agreement, RDN would pay AU$0.5 million to Arrow in cash and through issue of shares
- Soil sampling reprocessing results from the project are anticipated to support in defining the further areas of interest
Raiden Resources Limited (ASX: RDN) has acquired 100% of the Li-Cs-Ta (LCT) rights over the Arrow Project under an earn-in agreement inked between Arrow Minerals Limited and RDN in August 2023.
Data source: Company update
Details of the transaction
As per the agreement, RDN received a right to earn 85% LCT rights in Arrow Project, Pilbara, by bearing defined exploration expenditure, making stock or staged cash payments and achieving decided technical milestones.
The agreement also provided an Upfront Option to RDN, through which it gained a right to acquire 100% LCT rights within three months from execution of the agreement by undertaking the following activities –
- A cash payment of AU$250k to Arrow Minerals
- Issue that number of RDN shares, which equals the value of AU$250k divided by a deemed issue price equal to 20-day VWAP of the shares as traded on the ASX before the date that the Election Notice is provided.
Under the terms of the agreement, 1% Net Smelter Royalty (NSR) is retained by Arrow Minerals, with RDN having the first right of refusal if the party wishes to sell its NSR.
Soil sampling at Arrow Project
During the 2020 maiden sampling campaign, the company had collected soil sample pulps. The gathered soil sample pulps have been submitted for re-analysis for the LCT suite of minerals.
RDN’s management is conducting re-analysis to define target areas with elevated LCT geochemical responses for follow-up.
RDN shares traded at AU$0.037 apiece at the time of writing on 6 November 2023.