ASX-listed Raiden Resources has decided to exercise its option to acquire 100% lithium-caesium-tantalum (LCT) mineral rights from Arrow Minerals’s Arrow project in Western Australia.
Raiden and Arrow signed an agreement in August this year, under which Raiden agreed to earn a right for an 85% project-level position for LCT rights in the project.
The right has been earned by paying cash and stock options to Arrow, in a staged manner.
It had also exercised an upfront option by which Raiden had the right to acquire 100% of the LCT rights within three months of executing the agreement.
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By GlobalDataIt made a cash payment of A$250,000 to Arrow Minerals and plans to issue that number of shares whose total value will be A$250,000 divided by a deemed price to 20-day volume weighted average price (VWAP) of shares traded on the ASX.
Besides securing A$500,000 in cash and stock options, Arrow is also entitled to a 1% net smelter royalty (NSR) over the lithium-caesium-tantalum (Li-Cs-Ta) minerals.
Raiden also retains the first right of refusal if Arrow plans to sell the NSR.
Raiden managing director Dusko Ljubojevic said: “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. Management will now focus on further defining the potential for pegmatite-hosted mineralisation across the entire Arrow project.”
Located 110km from Port Hedland in the Pilbara region of Western Australia, the Arrow property has two exploration licences covering an area of 377km².
Raiden has submitted soil samples for re-analysis for the LCT suite of minerals. It believes that the pegmatites could be obscured by sediment cover and soil sampling results can help define target areas with their elevated levels.