Why is Raiden Resources in a Trading Halt?
Raiden Resources Limited
11 8

Why is Raiden Resources in a Trading Halt?

In a move that could potentially reshape the landscape of mineral exploration in Western Australia, Raiden Resources Limited (ASX: RDN) has announced the successful acquisition of a 100% interest in mineral rights over the Mt Sholl project. This transaction, which secures rights to Lithium-Caesium-Tantalum (LCT) and Nickel-Copper-Platinum Group Elements (Ni-Cu-PGE), marks a significant milestone for the company and could open up a wealth of opportunities in the emerging LCT district and base metal exploration.

Securing 100% of Mt Sholl Project

Raiden has acquired Welcome Exploration Ltd. 's 20% interest in 12 tenements comprising the Mt Sholl project, thereby consolidating their position to 100%. This strategic move aligns with Raiden's vision to expand its presence in the Pilbara region and capitalize on the burgeoning demand for lithium, while also tapping into the potential of the Mt Sholl Ni-Cu-PGE deposit.

The Emergence of an LCT District

The Mt Sholl project has recently gained attention due to promising developments in pegmatite mineralization, particularly highlighted by companies like GreenTech Metals Ltd (ASX: GRE) and ARV, whose drilling results have raised hopes of LCT mineralization. These findings provide valuable indications of the district's mineralization potential, making it a compelling prospect for exploration.

Story Continues.. after this ad because we need some dollarydoos

Multi-Kilometre Lithium in Soil Anomalies

To further substantiate the potential for lithium mineralization, Raiden conducted a soil sampling program over the Mt Sholl tenements, specifically tenement E-47/3181. The program yielded compelling results, defining multi-kilometre lithium in soil anomalies across the project area. These anomalies appear to correlate with recent discoveries on the eastern side of the project, raising the prospects of significant lithium deposits within the area.

Unlocking Ni-Cu-PGE Potential

While much attention has been directed toward lithium exploration, the acquisition also secures Raiden's 100% position in the Ni-Cu-PGE deposit rights at Mt Sholl. Metallurgical studies on this front are ongoing, but management is optimistic about the potential for a district-scale Nickel-Copper camp. With full control over the base metal rights, the company now has the flexibility to explore strategic options and partnerships to advance the Ni-Cu-PGE deposit.

Transaction Terms

The terms of this transformative transaction involve Raiden paying Welcome Exploration $1. 5 million in cash and issuing $2 million in Consideration Shares. The Consideration Shares, subject to approval by Raiden's shareholders, come with a voluntary escrow period of six months from the date of completion. Additionally, a milestone payment of $5 million in cash or script, at $0. 05 per share, is contingent upon Raiden's decision to proceed with mine construction and operation within the tenements.

Raiden's Vision for the Future

Mr. Dusko Ljubojevic, Managing Director of Raiden, expressed enthusiasm about the acquisition's potential. He stated, "This transaction not only provides the Company with 100% exposure to the potential LCT mineralisation on the project but also provides the Company with 100% exposure to the Mt Sholl Ni-Cu-PGE deposit. While management has recently focused on lithium exploration throughout its portfolio in the Pilbara, we believe that the Mt Sholl Ni-Cu-PGE deposit represents significant potential to unlocking a district-scale Nickel-Copper camp. "

Raiden Resources Limited's acquisition of 100% of the LCT and Ni-Cu-PGE mineral rights over the Mt Sholl project represents a strategic move that aligns with the company's long-term growth objectives. With compelling indications of lithium and base metal potential in the region, Raiden is poised to play a pivotal role in the future of mineral exploration in Western Australia. Investors and industry stakeholders will undoubtedly be closely monitoring the company's progress in unlocking the full potential of Mt Sholl.

Promote your business on our growing investor platform: Advertise With Us

Like

Reply 129 Share