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Raiden Resources Nears Completion of Major Lithium Portfolio Acquisition in Roebourne

21 August 2023 12:05
ASX: RDN

Raiden Resources Limited (ASX: RDN) is set to solidify its position in the lithium exploration sector with the completion of due diligence on its proposed acquisition for 80% interest in the Welcome Exploration Pty Ltd (Welcome) tenements adjoining Azure Minerals’ (ASX: AZS) lithium project, in the Pilbara region of Western Australia.

A Promising Lithium Portfolio

The successful completion of the due diligence process has paved the way for Raiden to finalise its acquisition of a substantial and promising lithium exploration portfolio, with the Company set to proceed with acquiring an 80% stake in five tenements adjacent to Western Exploration. These tenements feature a four-kilometre stretch of recurrent lithium pegmatite outcrop, a focal point for the Company’s strategic interest.

Spanning approximately 39 square kilometres, the Andover Complex within the Roebourne Project offers a significant area for lithium exploration. This acquisition places Raiden in proximity to Azure Minerals’ lithium project, a clear advantage in terms of resource potential and collaboration opportunities.

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Figure 1: Acquired projects in relation to Raiden’s Roebourne Project and Azure Minerals Ltd.’s Lithium-Nickel project3 – lithology over open file 40m RTP TMI 1VD Magnetics

Confirmed Lithium Mineralisation

During the due diligence phase, Raiden successfully conducted a focused mapping and outcrop sampling program across the Roebourne South tenements (E47/4061 & E47/4062), involving the collection of twenty rock chip samples based on targeted features identified through satellite imagery.

The outcomes of field mapping confirmed the presence of diverse pegmatites with varying widths and strike lengths within an expansive 4-kilometre pegmatite field, with several limited outcrop samples revealing elevated Li2O values, including a standout result of 2.22% Li2O from sample R21160, sourced from a pegmatite estimated to be 200 metres long and 6 metres wide at the sampled site. Additional samples, such as sample R21163, displayed high-grade lithium-bearing pegmatites, featuring a Li2O content of 0.98%.

Notably, the Company has already initiated a comprehensive exploration program encompassing detailed mapping and intensified rock chip sampling across the Roebourne, Arrow North, and Mt Sholl areas (E47/4061 & E47/4062, E47/3476, E47/3181). This program aims to meticulously map outcropping pegmatites and collect rock samples at higher densities across the aforementioned regions, all with the overarching goal of establishing precise drill targets.

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Figure 2: Rock sample R21160, collected from a 6-metre wide, 200m long pegmatite outcrop (left image). Pegmatite outcrop at rock sample R21160 location, with further pegmatite outcrops along strike (in background) (right image).

Key Transaction Details

The acquisition deal between Raiden and Welcome involves the transfer of an 80% equity interest in Welcome’s tenements. As part of the agreement, Raiden will pay a cash consideration of $50,000 and issue fully paid ordinary shares valued at $365,000. These shares will be subject to a six-month voluntary escrow period from the completion date, with Welcome’s 20% equity interest free carried until a decision to mine is announced.

At the end of the free carried period, Welcome has the option to fund its pro-rata share of production and development costs or dilute its interest according to a prescribed formula.

Focused Exploration and Development

Raiden is now focused on the northern Roebourne Project tenements, where recent sediment overlays the interpreted Andover Complex rocks, and is planning a precise soil sampling program to identify anomalies that could prove crucial for future drill testing initiatives.

Mr. Dusko Ljubojevic, Managing Director of Raiden, emphasised the Company’s commitment to advancing exploration efforts.

“With the due diligence exercise completed to our satisfaction, we are looking forward to progressing more detailed work programs and evaluating the entire Roebourne project area. With the confirmation of high-grade Li2O mineralisation within the mapped pegmatites, management will focus on mapping out in detail the outcropping areas and progress the Projects to drill stage as soon as we can.”

“Furthermore, our teams are currently in the field evaluating the entire portfolio for pegmatite/lithium potential and we are hopeful this will lead to definition of further anomalies and areas of interest.”

RDN’s Australian Stock Exchange-listed share price is currently trading at 1.2c (11:30 am UTC+ 8 hours).

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