In the first half of calendar year 2021, Ardiden’s management decided to sell 80% of its lithium properties to Green Technology Metals (ASX:GT1) to create a 20%-80% joint venture. The agreed price was A$9.2m including 9m GT1 shares, accounting for 7.8% ownership in GT1. As part of the agreement, Ardiden will have a free-carry interest in the JV up to the completion of a Definitive Feasibility Study, or Decision to Mine milestone.
GT1 lithium discovery pushed ADV higherThis decision to sell the lithium assets was not welcomed by ADV shareholders, indicated by a drop in the share price on the day of announcement (6 May 2021). However, GT1’s lithium discoveries at the JV tenements, announced on 17 January 2022, is proving Ardiden’s management right. GT1 is conducting an 11-hole drilling program at the Seymour lithium resource and the results of the first hole have already shown significant upside potential to the size of the resource. Phase one of the drilling program is to be completed in March 2022.
GT1 Price at posting:
91.0¢ Sentiment: Hold Disclosure: Held
