Source: The Market Herald
- Raiden Resources (RDN) enters a binding letter of intent agreement for the sale of its Yandicoogina project in Western Australia to LW Resources
- LW Resources will acquire the tenements in a deal valued at $160,000 in cash and scrip
- RDN will retain its 10 per cent free-carried interest over the project area until the completion of a positive feasibility study
- Managing Director Dusko Ljubojevic says the sale will allow Raiden to continue advancing its Mt Sholl deposit in the Pilbara, while generating value from its non-core portfolio
- RDN shares are trading at 0.4 cents at 2:00 pm AEST
Raiden Resources (RDN) has entered a binding letter of intent agreement for the sale of its Yandicoogina project in the Pilbara.
LW Resources will acquire the tenements in a deal valued at $160,000 in cash and scrip.
Through the agreement, RDN will retain its 10 per cent free-carried interest in Yandicoogina until the completion of a positive feasibility study and a 75-day exclusivity and due diligence period.
The definitive agreement involves a cash consideration of $50,000 paid to RDN and the issue of $100,000 in shares at a price based on a volume-weighted average price (VWAP) of the company five days before the purchase.
A cash payment of $10,000 will be paid to Raiden within five days of receiving a letter of intent for the due diligence period and, subject to company satisfaction, each party will negotiate a definitive tenement sale agreement.
RDN Managing Director Dusko Ljubojevic said the sale would allow the company to continue advancing its Mt Sholl nickel-copper-cobalt-platinum group element (PGE) deposit in the Pilbara while generating value from its non-core portfolio.
“The transaction reduces the company’s costs, strengthens the balance sheet and provides exploration upside for shareholders,” Mr Ljubojevic said.
“Further non-core asset divestments and partnerships are under negotiation and
the management is confident we will close on further transactions.”
Following the positive feasibility study, Raiden will have multiple options regarding its stake in the Yandicoogina project.
RDN shares were trading at 0.4 cents at 2:00 pm AEST.