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Highlights
- RDN has inked a binding earn-in agreement with Mallina Co for its Arrow Gold project, Pilbara.
- Mallina will be the operator of the project, while RDN will conduct the Lithium-Caesium-Tantalum (LCT) exploration campaigns at the project.
- RDN shall retain 100% of the LCT rights in the project.
Raiden Resources Limited (ASX: RDN, DAX: YM4) has finalised a binding earn-in agreement with a subsidiary of Discover Co Pty Ltd, Mallina Co Pty Ltd, for the Arrow Gold Project located in Pilbara. As per the agreement terms, RDN will retain full ownership of the rights to all LCT and related mineralisation in the project.
Mallina is designated as the project operator, whereas RDN will operate the exploration program for LCT.
The divestment of the Arrow Gold Project marks the fifth transaction undertaken by the company concerning its non-core assets. These transactions are aimed at accelerating exploration campaigns and optimising the discovery potential across the company’s core project portfolio.
Terms of the option agreement
Mallina has committed to spend a minimum of AU$600k on exploration activities, which will include a minimum 3,000m of Air Core drilling, within the minimum obligation period of 12 months of the agreement execution.
Within 24 months after the minimum obligation period, Mallina will have the option to earn into a 51% interest in the project by sole financing an additional exploration campaign, including a minimum of 17,000m of diamond or reverse circulation drilling.
Furthermore, Mallina will have the option to earn a 75% stake in the project by sole financing a further exploration campaign, comprising of a minimum 30,000m of diamond/RC drilling or to publish a pre-feasibility study (PFS) over the project.
Should Mallina acquire a 75% interest in the project, Raiden will have the option to maintain its interest by co-financing further exploration and development costs, or sell its interest in the project, with Mallina holding the right of first offer for that interest.
In the event that the interest of either party dilutes to 10% or less, that party will be deemed to have converted its interest to a 1% net smelter return royalty.
RDN shares traded at AU$0.041 apiece on 10 May 2024.
