Ardiden (ASX:ADV) is set to pocket $2.5 million as part of a 2022 deal to sell a string of joint venture (JV) assets in Canada to Green Technology Metals (ASX:GT1).
The company reports this payment is part of a deferred consideration for the sale of its 20% interest in the Seymour Lake, Root Lake, and Wisa Lake assets in Ontario.
Under the original sales deal, the $2.5 million deferred consideration was to be paid to Ardiden upon Green Technology Metals reporting a JORC mineral resource of 20 million tonnes at the JV tenements.
Ardiden says the Canada Revenue Agency (CRA) requires 50% of the proceeds to be withheld pending the completion of any transfer of taxable Canadian property.
The withholding has been placed on deposit with CRA, and Ardiden expects the majority of this to be remitted in early 2024 after the company files a Canadian tax return.
Ardiden also reports it continues to retain about 13 million shares in Green Technology Metals, which were acquired as part of the proceeds from the sale of the lithium assets, representing a 5.14% equity holding in GT1. These shares are escrowed until November 2023.
Commenting on the deal, Ardiden Chief Executive Officer (CEO) and Managing Director Greg Romain says: “This is a great outcome for Ardiden and our former joint venture partner, GT1.
“The sum received further bolsters our healthy balance sheet during this time of tough capital markets“
To increase the JORC resource above 20 million tonnes in such a short time is fantastic. The sum received further bolsters our healthy balance sheet during this time of tough capital markets.”
On 24 October 2023, Ardiden entered into a binding agreement with Green Technology Metals to sell its remaining interest in the Lithium Joint Venture over its assets in northwest Ontario, Canada.
Under this deal, Green Technology Metals paid an initial $16 million in cash.
Ardiden is an ASX-listed explorer focused on its Pickle Lake Gold Project in northwest Ontario, Canada. The Pickle Lake Gold Project covers 1,088km-square in the ‘well-endowed’ Uchi Geological Subprovince.
Additionally, the company’s 5.14% equity interest in Green Technology Metals gives it exposure to Green Technology Metals’ lithium assets in Ontario.
Write to Harry Mulholland at Mining.com.au
Images: Ardiden Ltd
