Gold explorer Ardiden Limited has agreed an exclusive option with Great Northern Lithium to sell 80% of its lithium portfolio for up to A$8.7 million.
Great Northern Lithium (GNL) is a newly formed Australian company focussed on exploring and developing hard rock lithium deposits in North America.
Ardiden has 100% ownership of three lithium projects in northwest Ontario: Seymour, Wisa and Root Lake.
The company’s Non-Executive Chairman Neil Hackett said Ardiden has been on the lookout for a partner or alliance to unlock value from these projects, which are strategically located near the USA border, with easy access to existing infrastructure.
“Ardiden has been actively evaluating strategic options to best realise the full potential of its lithium assets,” he said.
“The prospect of selling 80% of Ardiden’s lithium portfolio to a new, lithium-focused entity provides an opportunity to accelerate exploration and development of these quality assets within the booming battery metals sector.”
According to Mr Hackett, Ardiden would retain a 20% free-carry to completion of either a Bankable Feasibility Study (BFS) or Decision to Mine.
“If they exercise the option, teaming with experienced lithium developers, while retaining a 20% free carry, enables Ardiden to unlock value for shareholders, while retaining some upside exposure to the battery metals market,” he concluded.