- Raiden Resources (ASX:RDN) enters into an MOU with First Quantum Minerals Australia over its Mt Sholl project in Western Australia
- Under the agreement, FQMA will solely fund the project up to the DTM, with Raiden holding a 30 per cent free-carried interest up to DTM
- Raiden retains gold and LCT rights, with ongoing exploration taking place
- The strategic move follows Raiden’s acquisition of the remaining 20 per cent project interest at Mt Sholl
- RDN last traded at 3.5 cents
Raiden Resources (ASX:RDN) has entered into a memorandum of understanding (MOU) with First Quantum Minerals Australia (FQMA) over its Mt Sholl project in Western Australia.
Under the agreement, FQMA will solely fund the project up to the decision to mine (DTM), with Raiden holding a 30 per cent free-carried interest up to DTM.
Raiden will maintain its rights to gold and lithium-caesium-tantalum (LCT) over the project, with exploration continuing. FQMA will have its eyes on the nickel-copper-PGE rights of the project.
The announcement today follows the company’s recent decision to acquire the last 20 per cent project interest in the LCT and nickel-copper-PGE mineral rights at Mt Sholl.
Raiden’s main benefit is that it’ll be enabled to continue its primary focus on LCT, while also benefiting from funding nickel-copper-PGE exploration at the project.
“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,” RDN Managing Director Dusko Ljubojevic said.
“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.”
During a 12-month due diligence period, FQMA will invest in Raiden through staged investments and milestone cash payments. This includes an initial payment of $250,000 in cash and a minimum spend of $1.5 million for essential activities such as ground-based EM & IP and drilling.
For FQMA to earn 70 per cent equity, it must fund a minimum of $25 million across eight years on exploration and associated studuies. Raiden is posied to receive $10 million in staged payments across the eight year cycle.
At DTM, Raiden will have the option to co-fund its 30 per cent portion of development costs, dilute to a 20 per cent project level decision in exchange for FQMA funding Raiden’s development costs, or sell its interest at fair market value or dilute to a one per cent net smelter royalty.
RDN last traded at 3.5 cents.