Raiden Resources (ASX:RDN) has announced its execution of an option agreement with privately held Mallina for the latter to farm-in on Raiden’s Arrow gold project.
Notably, the company described today’s deal as a “divestment” of non-core assets while it continues to focus on the Andover lithium play.
Its newfound partner Mallina was described as led by an experienced team who have had “previous discovery success.”
Under the deal, Raiden will retain 100% of the lithium rights over the project, but Mallina can otherwise farm-in up to 51% by carrying out a schedule of mandatory works.
These include a minimum spend of $0.6M at the project and a 3000m AC drill run within 12 months of today’s deal. Mallina must also pay Raiden $250,000 in cash if the former lists on the ASX.
However, to get all the way to 51% – technically a majority stake – Mallina must fund a 17,000m diamond drill program within the next 2 years at its own cost.
A further stipulation allows Mallina to earn 75% if it funds a 30,000m diamond/RC campaign – or – completes a PFS for the project in the next 60 months.
“Mallina is led by an accomplished technical and corporate team with a track record of discovery … in parallel, we plan to continue with the lithium exploration program on the Arrow project,” Raiden chief Dusko Ljubojevic said.
“With this transaction, management continue to deliver on our strategy of generating strategic partnerships over the non-core assets.”
RDN Price at posting:
4.1¢ Sentiment: Buy Disclosure: Held
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