Forgent (AIM:FORG) has entered into a binding option agreement for the exclusive right to acquire 80% of the Mount Sholl Nickel-Copper-Platinum Group Element Project in Western Australia.
Under the option agreement, Forgent will pay $2.7 million to Raiden Resources (ASX:RDN), comprising a combination of cash and shares. The option period enables the company to complete technical, legal, and commercial due diligence.
Raiden will retain a 20% interest in Mount Sholl, free-carried through up to $4 million in direct project expenditure, after which the interest will be subject to a standard dilution formula under a joint operating agreement.
The project comprises four exploration licences and 10 prospecting licences and includes a maiden resource estimate of 23.4 million tonnes @ 0.60% nickel-equivalent. The project also has an exploration target of 80–150 million tonnes @ 0.45–0.75% nickel-equivalent.
CEO James Parsons says the option agreement represents a compelling opportunity to acquire a substantial nickel, copper, and platinum group element resource in one of Australia’s most established and resource-rich mining jurisdictions.
“If exercised, it would introduce JORC-compliant mineral resources to the Forgent portfolio for the first time,” Parsons says.
“With the upcoming drill campaign at Peak Hills and expected initial results from Green Rocks, Forgent is building a portfolio with multiple near-term catalysts and significant exploration upside.”
Forgent is a technology-led energy transition company with a portfolio spanning copper-gold exploration and gasification technology.
Write to Aaliyah Rogan at Mining.com.au
Images: Raiden Resources
