- Canadian miner Ardiden (ADV) has flagged potential plans to monetise some of its lithium assets in its latest quarterly financial report
- In the report, Ardiden highlighted $1.3 million in spending over the quarter with no cash receipts
- With just under $2 million worth of cash in the bank at the end of March, this means the company had less than two financial quarters of funding available
- As such, Ardiden highlighted three potential options to keep funding strong and meet its business objectives
- The first option is to monetise its lithium projects in Canada through potential sales, spin-offs, joint ventures or some other deal; the second is to reduce costs and overheads; the third is to raise some fresh capital
- So far, nothing has been set in stone, but either way, Ardiden said it is confident is can meet its future business objectives
- Shares in Ardiden are down 6.25 per cent this afternoon at 1.5 cents each
Canadian miner Ardiden (ADV) has flagged potential plans to monetise some of its lithium assets in its latest quarterly financial report.
In the report, the company highlighted $1.3 million in spending on exploration and other operating activities with no income over the March 2021 quarter.
While this is certainly not an unusual position for an exploration company, Ardiden had just under $2 million in available cash at the end of the quarter — meaning at currently spending levels, the company can stay afloat for less than two financial quarters.
Nevertheless, Ardiden said it was confident its current cash position and cashflow levels will be enough to meet its business objectives, with three potential plans to keep operations running smoothly.
The first of these plans is for Ardiden to potentially monetise its lithium projects. While the company’s Pickle Lake Gold Project in Ontario is its core focus, Ardiden also owns three lithium projects in Canada — namely, the Seymour Lake, Wisa Lake and Root Lake projects.
Ardiden said today it is evaluating several options for monetising the projects including retention, potential sales, spin-offs, joint venture and business collaborations. Nothing concrete has been inked up yet and all options are subject to shareholder approval when appropriate.
The second potential plan is to find a way to reduce admin costs and overheads to allow the funds currently in the bank to last longer.
Finally, Ardiden said it may launch a fresh capital raising plan to fund its exploration and drilling work.
“Ardiden has demonstrated a track record of successfully raising cash via share placements and share purchase plans to fund its operations,” company management said.
“It is expected that the company will undertake future capital raising activity, which it expects will be successful in meeting its cash requirements to ensure drilling will continue with little disruption.”
While it seems a capital raise is the most likely option of the three, the company has not confirmed which path it plans to take to continue operations.
Shares in Ardiden are down 6.25 per cent at 12:24 pm to 1.5 cents each. The company has a $25.79 million market cap.