- Ardiden (ADV) has executed a binding tenement option and acquisition term sheet to sell 80 per cent of its lithium portfolio to Great Northern Lithium
- Great Northern Lithium is a newly formed Australian company that is focussed on exploring and developing hard rock lithium deposits in North America
- The acquisition will cost $8.7 million, and completion is subject to shareholder and regulatory approval
- Broken down, this sum consists of a $200,000 fee for an exclusive due diligence period and a $1.5 million up-front cash payment within five business days of completion of the term sheet
- Finally, the remaining $7 million will be paid in cash and shares in two equal phases of $3.5 million at nine and 18 months post-completion
- Ardiden is up 7.69 per cent on the market and shares are trading at 1.4 cents
Ardiden (ADV) has executed a binding tenement option and acquisition term sheet to sell 80 per cent of its lithium portfolio to Great Northern Lithium.
Great Northern Lithium is a newly formed Australian company that is focussed on exploring and developing hard rock lithium deposits in North America.
The total cost of the acquisition is $8.7 million, and completion is subject to shareholder and regulatory approval.
Broken down, this sum consists of a $200,000 fee for an exclusive due diligence period of up to 60 days.
Then a $1.5 million up-front cash payment within five business days of completion of the term sheet must be paid.
Finally, the remaining $7 million will be paid in cash or shares in two equal phases of $3.5 million at nine and 18 months post-completion.
“The prospect of selling 80 per cent 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,” Non-Executive Chairman Neil Hackett said.
“These assets are strategically located near the USA border, with easy access to existing infrastructure,” he added.
Upon completion, Ardiden will have the right to appoint one Non-Executive Director from Great Northern to its board.
Ardiden is up 7.69 per cent on the market this morning and shares are trading at 1.4 cents at 10:35 am AEST.