PERTH (miningweekly.com) – Gold explorer Ardiden on Wednesday reported that Great Northern Lithium had exercised an A$8.7-million option to form a lithium joint venture (JV).
The ASX-listed company in May agreed to an exclusive option with Great Northern Lithium to potentially sell 80% of its lithium portfolio. The company holds three lithium projects in north-west Ontario, including the Seymour Lake deposit, which has an estimated resource of 4.8-million tonnes at 1.25% lithium oxide and 186-million parts per million tantalum pentoxide.
Under the terms of the agreement, Ardiden would receive A$1.5-million as an up-front cash payment, and a further A$7-million in trailing cash installments in two equal tranches at 9 months and 18 months from completion.
Great Northern Lithium, which will now be renamed Green Technology Metals, has secured initial funding, including a cornerstone subscription from US-based privately held investment business AMCI Group.
“We are pleased to have exercised the option to acquire 80% of Ardiden’s Ontario lithium assets. The formation of our joint venture marks the first steps towards the development and growth of the Green Technology Metals business,” said nonexecutive chairperson John Young.
“The combination of a high-quality asset base in close proximity to existing infrastructure and key markets presents a great opportunity and we look forward to taking advantage of this as we seek to create and grow a successful, sustainable and high-returning global lithium business.”