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Raiden Resources Enters MoU with First Quantum Minerals Australia

13 December 2023 12:44
ASX: RDN
Raiden Resources Enters MoU With First Quantum Minerals Australia

Raiden Resources Limited (ASX:RDN) has announced the signing of a Memorandum of Understanding (MOU) with First Quantum Minerals Australia Ltd (FQMA) for the Mt Sholl Ni-Cu-PGE Project, in line with Raiden’s strategic focus on its asset portfolio, notably the LCT projects in the Pilbara.

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Figure 1: Mt Sholl Project in relation to Raiden Resources Lithium portfolio projects and Andover Lithium discovery

Transaction Details

The Company recently finalised a strategic transaction, obtaining Welcome Exploration Ltd.’s 20% stake in 12 tenements. This acquisition secures Raiden’s full ownership of Lithium-Caesium-Tantalum (LCT) and Ni-Cu-PGE mineral rights for the Mt Sholl Project,

The MoU stipulates a 12-month due diligence (DD) period for FQMA, during which they have the option to earn into the Ni-Cu-PGE Project through staged investments and milestone cash payments to Raiden Resources.

This phase involves a $250k cash payment and a minimum expenditure of $1.5m during DD, covering ground-based EM & IP studies and drilling of not less than 3,000m.

FQMA holds the exclusive option to sole fund all exploration activities and studies up to the decision to mine (DTM), aiming for a 70% project-level position, while Raiden Resources retains a 30% interest free-carried.

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Figure 2: Mt Sholl Project and Ni-Cu-PGE resources and prospects in the district

Earning Equity

To achieve a 70% equity stake, FQMA commits to sole funding a minimum of $25m over 8 years on exploration activities and associated studies.

In return, the Company will receive staged cash payments totalling $10m throughout the exploration cycle.

At DTM, Raiden Resources has flexible options, including co-funding development costs, diluting to a 20% project level decision, selling its interest at fair market value, or diluting to a 1% Net Smelter Royalty (NSR).

Strategic Partnership

Both parties are working towards executing a binding letter agreement in the coming months, ensuring alignment with the terms of the MoU.

The strategic partnership is seen as a means to secure financial backing for exploration and leverage FQMA’s technical expertise in the exploration and development of nickel-copper sulphide deposits.

Mt Sholl Ni-Cu-PGE Project Overview

The Mt Sholl Project is highlighted as the largest and currently the only open-pitable Ni-Cu-PGE sulphide resource in the district.

The Project, based on ~85,000 metres of drilling and technical studies conducted over several decades, shows potential for increased mineralisation, with all deposits open along strike and to depth.

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Figure 3: Mt Sholl Project area with mineral resource and pit (0.35% Ni Eq. cut-off) locations

The recently announced Maiden JORC Mineral Resource for Mt Sholl comprises 23.4Mt @ 0.60% Ni Eq, including 83.9kt of Ni metal, 93.7kt copper metal, and 233,644oz of Pd+Pt+Au.

Additionally, an Exploration Target of 80 – 150Mt at a grade range of 0.45% – 0.75% Ni Eq. or 1.15% – 1.95% Cu Eq. underscores the growth potential of the Project.

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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)

Ongoing Exploration

Metallurgical studies on the Mt Sholl Project, initiated by Raiden, are currently ongoing.

These studies are expected to advance further under the proposed partnership with FQMA, reinforcing the commitment to unlocking the full potential of the Ni-Cu-PGE deposit.

Mr. Dusko Ljubojevic, Managing Director of Raiden Resources, highlighted that the Company’s latest transaction aligns with their objective of maximising shareholder value across their project portfolio.

“The Mt Sholl Project is the largest, and currently the only open- pitable, Ni-Cu-PGE sulphide resource in the district and may have the potential to unlock a district scale opportunity for development,” he said.

“The current resource and JORC Exploration Target are based on ~85,000 metres of drilling, along with other technical studies undertaken over the past several decades. Work to date has demonstrated the potential for an increase in mineralisation, with all deposits being open along strike and to depth.”

“We look forward to working with the FQMA team, which brings, not only the ability to fund future exploration programs, but also a wealth of technical experience in exploration and development of nickel-copper sulphide deposits.”

RDN’s Australian Stock Exchange-listed share price is currently trading at $0.035 AUD (12.30pm UTC+ 8 hours).

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