Raiden Resources Limited (ASX: RDN) has recently executed a strategic transaction, acquiring Welcome Exploration Ltd.’s 20% interest in 12 tenements to secure a 100% interest in Lithium-Caesium-Tantalum (LCT) and Ni-Cu-PGE mineral rights over the promising Mt Sholl Project.
Figure 1: Mt Sholl Project in relation to Raiden Resources Lithium portfolio projects and Andover Lithium discovery
The Mt Sholl Project is proving to be a hotspot for lithium exploration, with recent drilling adjacent to the area intercepting pegmatite mineralisation.
Raiden’s completion of a soil sampling program over tenement E-47/3181 has revealed several multi-kilometre lithium in soil anomalies, which seem to align with recent discoveries on the eastern side of the project area.
Figure 2: Mt Sholl Project (northern area) with designated soil sampling areas, including GreenTech Metals Ltd.’s recently announced lithium-in-soil anomalies and pegmatite drill intercept
Strategic Focus on Ni-Cu-PGE
While Raiden has been actively exploring lithium in its Pilbara portfolio, the strategic significance of the Mt Sholl Ni-Cu-PGE deposit has not gone unnoticed by the Company.
The recent acquisition solidifies Raiden’s control with a 100% stake in the rights to this deposit, where ongoing metallurgical studies are currently underway.
In April 2023, Raiden unveiled pivotal findings for the Mt Sholl Ni-Cu-PGE deposit, revealing a Maiden JORC Mineral Resource (MRE) and an associated JORC Exploration Target.
The MRE details a maiden resource of 23.4 million tonnes at 0.60% Ni Eq. or 1.54% Cu Eq., while the JORC Exploration Target outlines a range of 80 – 150 million tonnes at a grade of 0.45% – 0.75% Ni Eq. or 1.15% – 1.95% Cu Eq.
Figure 3: Mt Sholl project area with mineral resource and pit (0.35% Ni Eq. cut-off) locations
Under the terms of the agreement, Raiden is set to acquire Welcome Exploration’s 20% interest in the 12 tenements, ensuring a 100% control of mineral rights over the Mt Sholl Project.
The consideration for this acquisition involves a cash payment of $1,500,000 and the issuance of $2,000,000 worth of fully paid ordinary shares at $0.05 per share.
The Consideration Shares will be subject to a six-month voluntary escrow period post-transaction completion.
Additionally, a milestone payment of $5 million is contingent upon Raiden’s decision to proceed with the construction and operation of a mine, excluding gold, on any part of the acquired tenements.
Notably, the vendor retains a 20% interest in the gold rights, with Raiden holding 80%, and this interest is free-carried to a final investment decision.
Considering the lithium-bearing pegmatite mineralisation potential at Mt Sholl, Raiden is gearing up for follow-up groundwork in early 2024.
Figure 4: A1 deposit, mineral resource and drilling in relation to the prospective zone (purple) which remains untested by drilling (left image); B2 deposit, mineral resource and drilling in relation to the prospective zone (purple) which remains untested by drilling (right image)
The Company aims to delineate further exploration targets, building upon the already defined multi-kilometre lithium in soil trends and anomalies.
Mr Dusko Ljubojevic, Managing Director of Raiden Resources commented, “This transaction not only provides the Company with 100% exposure to the potential LCT mineralisation on the project, in what has become an emerging LCT district and where the Company has recently demonstrated the potential for lithium mineralisation by defining multi-kilometre lithium in soil anomalies, but also provides the Company with 100% exposure to the Mt Sholl Ni-Cu-PGE deposit,” he said.
“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.”
“Having also secured a 100% position in the base metal rights, the Company is in a position to also consider strategic options and partnerships as a means for advancing the Mt Sholl Ni-Cu-PGE deposit.”
RDN’s Australian Stock Exchange-listed share price is currently trading at $0.037 AUD (3.30pm UTC+ 8 hours).