Raiden Resources’ (ASX:RDN) share soars as Welcome tenement acquisition deal concludes

Highlights

Raiden Resources has successfully completed the acquisition deal of the Welcome tenement.

The newly added tenement lies adjacent to Raiden’s Mt Sholl Project and expands prospectivity significantly with combined ~80,000m of drilling across all tenements.

In response to the upbeat market update, shares of Shares of RDN rose more than 13% on 22 October.

Efforts to expand footprint in the Pilbara region are bearing fruits for Raiden Resources Limited (ASX:RDN |DAX:YM4). The Company has completed the acquisition of Welcome Ni-Cu-PGE tenements, adjacent to its 100%-owned Mt Sholl Project in Western Australia.

Acquisition of NI-CU-PGE Tenements

Previously on 13 September 2021, Raiden had announced its plan to acquire an 80% interest in tenements of Welcome Exploration Pty Ltd. The deal included a cash consideration of AU$100,000 and the issuance of fully paid ordinary shares of RDN worth AU$500,000. The price of the share will be based on the volume-weighted average price (VWAP) for 20 days from the date of the execution of the agreement.

Raiden has received the provision of signed transfers, mining information and all statuary consents regarding the deal and the tenement. The cash amount has already been paid and the process for the allotment of shares is moving forward.

Mt Sholl and Welcome location plan (Image source: Company update, 13 September 2021)

Commenting on the acquisition update, Mr Dusko Ljubojevic, Managing Director of Raiden Resources, said -

“The board is pleased to have completed the acquisition of the Pilbara Welcome Ni-Cu-PGE tenements. This acquisition significantly expands the prospectivity of the Company’s Mt Sholl project, which is now defined through approx. 80,000m of historical drilling across the tenements”

For more insights, watch: Deep dive into Raiden Resources’s long term exploration strategy - Expert Talk with Dusko Ljubojevic

Raiden is undertaking a review and modelling of the historical drill data and geophysical survey data for the Mt Sholl and Welcome tenements. Results of the mapping and target generation program conducted earlier this year, will be combined with the historical review work to evaluate the prospects. Furthermore, Raiden plans to announce results of the evaluation and operational update on the project in the near term.

Mr Ljubojevic also shared his views on performances of base metals and said that prices of nickel, copper, cobalt and PGEs are expected to rise in the medium term.

“Management feels that this advanced project may underpin a significant value for the Company,” Mr Ljubojevic concluded.

The Way Forward

Raiden will perform a systematic analysis of platinum-palladium prospectivity at the Mt Sholl and adjacent Welcome tenements to delineate the extension of polymetallic mineralisation. Once done, drilling will be conducted to follow in areas with prospective for copper-nickel mineralisation. The targets that have been intersected in the historical drilling program and were not tested for platinum-palladium-cobalt will be tested in a planned drilling operation.

Share price

Shares of RDN soared more than 13% today on the back of the conclusion of the acquisition deal. Post the update, shares of RDN traded at AU$0.026 a share on 22 October 2021.

Shares of RDN traded at AU$0.026, ~4% higher against the previous close, with a market capitalisation of AU$30.69 million on 25 October 2021 at 12:56 PM AEDT.

Good read: Raiden Resources (ASX:RDN) buoyed by bonanza-grade gold results from Boodalyerrie

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