- Ardiden (ADV) completes the sale of its 20 per cent stake in the Lithium Joint Venture in Ontario, Canada, to joint venture partner Green Technology Metals (GT1)
- ADV has received half of the payment, with the remaining $8 million subject to Canadian withholding tax being held in trust
- GT1 will also make a $2.5 million consideration payment to Ardiden upon reporting a mineral resource of 20 megatons for the joint venture tenements
- Ardiden says it will set the proceeds from the sale towards gold exploration at its Pickle Lake gold project, also in Ontario
- ADV shares last traded at 0.6 cents, and GT1 shares are down 1.92 per cent to $1.02 at 10:31 am AEDT
Ardiden (ADV) has sold its 20 per cent stake in the Lithium Joint Venture in Ontario, Canada, to joint venture partner Green Technology Metals (GT1).
The deal was first announced at the end of October, with GT1 agreeing to pay $16 million upfront to snap up Adavale’s interest.
ADV has received half of the payment, with the remaining $8 million subject to Canadian withholding tax being held in trust.
Ardiden expects most of the residual cash to be remitted after filing a tax return in the first quarter of next year.
GT1 will also make a $2.5 million consideration payment to Ardiden upon reporting a mineral resource of 20 megatons for the joint venture tenements.
Meanwhile, Ardiden will retain its 5.14 per cent shareholder interest in GT1, which is currently valued at $13.5 million and escrowed until November 2023.
Ardiden says it will set the proceeds from the sale towards gold exploration at its Pickle Lake gold project, also in Ontario.
The Pickle Lake project lies in the Uchi Sub-province, which the company said was host to numerous currently-producing gold mines.
Ardiden also noted increasing gold exploration activity, with a number of exploration
companies active in the area.
ADV shares last traded at 0.6 cents, and GT1 shares were down 1.92 per cent to $1.02 at 10:31 am AEDT.