- Raiden Resources (RDN) has completed its purchase of a significant gold and nickel portfolio in the Pilbara from Pacton Gold
- The assets include the Arrow, Boodalyerrie and Yandicoogina gold projects, as well as the Mt Sholl nickel-copper-gold project, which collectively cover 823 square kilometres in northern Western Australia
- The company issued 207 million fully paid ordinary shares to wholly acquire Pilbara Gold Corporation, a subsidiary of Pacton Gold, which holds a 75 per cent stake in the projects
- C$500,000 (roughly A$507,290) in cash and a further 129 million shares will be issued to Pacton Gold, as well as an additional C$500,000 (roughly A$507,290) on the first anniversary of the transaction
- Raiden Resources is currently down 3.85 per cent to 2.5 cents per share
Raiden Resources (RDN) has completed its purchase of a significant gold and nickel portfolio in the Pilbara from Pacton Gold.
Located in northern Western Australia, the assets include the Arrow, Boodalyerrie and Yandicoogina gold projects, as well as the Mt Sholl nickel-copper-gold project, which collectively cover 823 square kilometres of highly prospective land.
Notably, the Arrow Project sits next to and along strike from De Grey Mining’s (DEG) Mallina Project, which hosts an estimated 2.2 million ounces of gold and newly identified Hemi discovery.
According to the agreement, which was originally announced on October 13 last year, Raiden issued 207 million fully paid ordinary shares to wholly acquire Pilbara Gold Corporation, a subsidiary of Toronto-listed Pacton Gold (PAC), which holds a 75 per cent stake in the projects.
Raiden will also pay C$500,000 (roughly A$507,290) in cash and issue a further 129 million shares to Pacton Gold, and a further C$500,000 (roughly A$507,290) in cash on the first anniversary of the transaction.
Arrow Minerals, the original owner of the Arrow Project, which sold the property to Pacton Gold, also retains the rights to explore, mine and extract lithium, caesium and tantalum from the Project, and will receive a discovery bonus of C$500,000 (roughly A$507,290) in cash should a gold resource of 100,000 ounces be identified.
All of the tenements are subject to a 1 per cent net smelter royalty, and all share-based payments are subject to a six-month escrow period.
“The finalisation of this acquisition provides the company with significant exploration exposure in a district that is quickly becoming the new frontier of gold exploration in Australia, owing to De Grey’s Hemi discovery,” said Dusko Ljubojevic, Managing Director of Raiden Resources.
“We are now in a position to begin our planned exploration program, which will initially focus on the Arrow gold project and Mt Sholl nickel project and we look forward to updating the market of our progress,” he added.
Raiden Resources is currently down 3.85 per cent to 2.5 cents per share at 2:17pm AEDT.