Dual-listed explorer Raiden Resources (ASX:RDN / DAX:YM4) is set to buy new mineral rights over the Arrow Project in Western Australia from Arrow Minerals (ASX:AMD) in a $500,000 deal.
Once the deal is complete, Raiden will hold 100% of the lithium-caesium-tantalum (LCT) minerals rights over the Arrow Project to complement its existing rights in the 223km-square area.
The company is waiting on the results of a recent bout of soil sampling completed across the project to help outline some areas of interest for potential follow-up work once it takes control of Arrow’s mineral rights.
Arrow and Raiden first struck the deal back in August, under which Raiden could either earn-in to 85% of the LCT rights over the project area or exercise an upfront option to purchase 100% of those rights in a mix of cash and scrip.
After its reconnaissance campaign over the area defined outcropping pegmatites and visually confirmed spodumene mineralisation at the project, Raiden exercised its upfront option to buy the LCT rights outright.
This means Raiden will now pay Arrow Minerals $250,000 in cash and, subject to shareholder approval, $250,000 in RDN shares at its 20-day volume-weighted average price (VWAP).
Arrow will retain a 1% net smelter royalty over the LCT minerals in the project area, and Raiden will have the first right of refusal if Arrow decides to sell this royalty.
Raiden Resources Managing Director Dusko Ljubojevic says: “On the basis of the successful reconnaissance campaign on the Arrow Project, which defined pegmatites and visual confirmation of spodumene mineralisation, the board have elected to exercise the option to purchase 100% of the LCT rights over the Arrow Project.
“The transaction significantly expands Raiden’s portfolio of lithium projects, with proven potential for LCT mineralisation”
The transaction significantly expands Raiden’s portfolio of lithium projects, with proven potential for LCT mineralisation. Management will now focus on further defining the potential for pegmatite-hosted mineralisation across the entire Arrow project.”
With the Arrow LCT rights now secured, Raiden now owns full rights to all minerals over the project area.
The company says alongside its lithium potential, the Arrow Project is considered prospective for ‘Hemi-style’ gold mineralisation.
Raiden’s Mt Sholl nickel-copper-cobalt-palladium deposit in the Pilbara region of Western Australia remains its flagship asset, although the company also owns several exploration assets in Serbia and Bulgaria.
Raiden Resources had $5.7 million cash and cash equivalents at hand as of 30 September, according to its latest quarterly report. The company has an $81.75 million market capitalisation.
Write to Joshua Smith at Mining.com.au
Images: Raiden Resources