Raiden Resources (ASX:RDN) has entered into a binding Option and Sale and Purchase Agreement with London-listed Forgent PLC for the divestment of an 80% interest in the Mt Sholl Ni-Cu-PGE Project in Western Australia.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
Under the agreement, Forgent now has an exclusive five-month option to acquire the stake, aligning with Raiden’s corporate strategy to “divest non-core assets, lower management costs, and maintain a robust cash position.” Should the buy-up deal go through, Raiden stands to earn as much as $2.25M.
Raiden would keep a 20% interest in Mt Sholl, free-carried through up to $4 million in
direct project expenditure. Things will then be converted to a 1% Net Smelter Royalty if either party dilutes interest less than 10%.
This is “consistent” with Raiden’s new focus on pursuing joint ventures, divestments, and sales across its non-core assets, the company wrote. “This agreement enables continued focus on priority assets, including Crixás Project.”
“Raiden is continuing to explore opportunities,” the explorer added.
The total transaction consideration from Forgent for the 80% interest amounts to $2.8M. There’s also a $100,000 option consideration, all in scrip.
This transaction follows several completed non-core data divestments by Raiden since 2023, totalling ~A$695,000 in stock, cash, and royalties. The company is still advancing its Crixás gold tailings project at the same time.
RDN has been smashed -25% today, to 0.3cps.
Join the discussion: See what HotCopper users are saying about Raiden Resources Ltd and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.