Raiden to divest Arrow gold project

Victoria Park-based explorer Raiden Resources has entered into an option agreement with Mallina Corporation, as it plans to divest its Pilbara-based Arrow gold project.

Dusko Ljubojevic-led Raiden told the market that the transaction was the company’s fifth in relation to its non-core assets – and it would maintain 100 per cent ownership of the site’s lithium-caesium-tantalum rights.

The Arrow gold project is located 110km south-west of Port Hedland, and 32km from De Grey Mining’s flagship Hemi gold deposit.

Under the deal, Mallina has agreed to spend a minimum of $600,000 towards exploration – which must include up to or more than 3,000 of air core drilling, within 12 months of the minimum obligation period.

Should it elect to proceed with the agreement, Raiden will receive an additional $250,000 cash or shares payment, depending on whether Mallina has listed on the Australian Securities Exchange. 

Mallina has an opportunity to secure a 51 per cent stake in Arrow should it elect to solely finance additional exploration of 17,000 metres of either diamond or reverse circulation drilling at the site.

Additionally, this stake can be raised 75 per cent should the company elect for additional exploration up to 30,000 metres or elect to complete a pre-feasibility study in regard to the project.

If Mallina secured a 75 per cent stake in Arrow, Raiden told the market it had the option to either sell its interest in the project – with Mallina having the first right of offer – or it could maintain its remaining interest by co-financing its slice for additional exploration or development.

Mr Ljubojevic said the move was aligned to Raiden’s primary objectives.

“With this transaction, management continue to deliver on our strategy of generating strategic partnerships over the non-core assets to ensure that aggressive exploration campaigns are delivered and to maximise the discovery potential,” he said.

“The company remains focused on the primary objectives, namely drilling the Andover North and South lithium projects.

“The Mallina team is led by an accomplished technical and corporate team, with a track record of discovery.

“We hope that their experience will lead to further technical success on the Arrow project.”

As of 10.12am WST, Raiden, which has copper-gold interests in Bulgaria, Serbia and Western Australia, was trading at 4.4 cents per share, down 2 per cent.