Raiden Resources Limited (ASX: RDN) has secured commitments from a variety of investors, raising $6 million through a share placement of around 272.7 million fully paid ordinary shares at 2.2 cents per share, a crucial boost to its exploration activities across its diverse lithium projects situated in Western Australia’s Pilbara region.
Strategic Funding for Lithium Exploration
The share placement capital raising has attracted considerable interest from both existing shareholders and new institutional investors, enabling the advancement of Raiden’s lithium projects, including the Andover North and Andover South lithium projects, Mt Sholl Nickel/copper/lithium project, and Arrow gold/lithium project.
Figure 1: Andover South and Andover North project areas with reconnaissance results, in relation to Azure Minerals recent lithium drill results
Initially aiming for $5 million, Raiden opted to accept an additional $1 million due to strong investor interest, with this oversubscription demonstrating the appeal of the Company’s exploration projects and strategic direction.
Allocation of Funds
The majority of funds secured through this placement will be directed towards propelling exploration activities within Raiden’s lithium project portfolio situated in the Pilbara region.
This allocation will be primarily channeled into the exploration and assessment of various lithium prospects, driving targeted drilling efforts on pivotal lithium prospects, and furthering the technical comprehension of these valuable resources. The three key projects that stand to benefit are:
Andover North and Andover South Lithium Projects: With the acquisition of an 80% interest in these projects, Raiden aims to capitalise on the proximity to Azure Minerals Limited’s Andover lithium project. Recent drilling results in the area have been promising, with intersections of up to 209.4 metres containing 1.42% Li2O, highlighting the potential of the region.
Mt Sholl Nickel/Copper/Lithium Project: Following the announcement of a maiden JORC mineral resource in April 2023, Raiden is now engaged in metallurgical testing and detailed mapping. The Project’s lithium potential will also be assessed through a comprehensive rock chip sampling program.
Arrow Gold/Lithium Project: Earlier in August, Raiden entered an agreement for up to 85% interest in granted Lithium-Caesium-Tantalum rights at the Arrow Project in Pilbara, with an option for 100%. The ongoing mapping and sampling at Arrow Project, situated 30km from De Grey Mining Limited’s Hemi Gold Project, is expected to yield results soon
Exploration Progress and Collaborations
Raiden’s ongoing mapping and sampling program for lithium-bearing pegmatites across its multiple projects is set to continue, with the Company expecting to release results as soon as they become available.
Additionally, the Company is in active discussions with strategic partners with respect to the development of both Western Australian and Balkan exploration assets.
The resounding success of this capital raising effort reflects the shared confidence of both existing and new shareholders in Raiden’s management team and its project portfolio. Notably, Tolga Kumova (through Kitara Investments Pty Ltd) has committed to maintain a substantial holding status through a ~$297k placement.
Mr. Dusko Ljubojevic, the Managing Director of Raiden, expressed gratitude for the level of support received, emphasising that these funds will play a pivotal role in driving the company’s lithium-focused projects forward, “We are very grateful for the level of support received from existing and new shareholders during this raise. These funds will allow us to mainly evaluate and advance the Company’s lithium project opportunities, including drill testing of our most important lithium prospects.”
RDN’s Australian Stock Exchange-listed share price is currently trading at 2.4c (3:20pm UTC+ 8 hours).