Gold explorer Ardiden reported that Great Northern Lithium had exercised an A$8.7-million option to form a lithium joint venture.
The ASX-listed company in May agreed to an exclusive option with Great Northern Lithium to potentially sell 80% of its lithium portfolio. The company holds three lithium projects in northwest Ontario, including the Seymour Lake deposit, which has an estimated resource of 4.8-million tonnes at 1.25% lithium oxide and 186-million parts per million tantalum pentoxide.
Under the terms of the agreement, Ardiden would receive A$1.5-million as an up-front cash payment, and a further A$7-million in trailing cash installments in two equal tranches at 9 months and 18 months from completion.
Great Northern Lithium, which will now renamed Green Technology Metals, has secured initial funding, including a cornerstone subscription from US-based privately held investment business AMCI Group.
“We are pleased to have exercised the option to acquire 80% of Ardiden’s Ontario lithium assets. The formation of our joint venture marks the first steps towards the development and growth of the Green Technology Metals business,” said non-executive chairperson John Young.
“The combination of a high-quality asset base in close proximity to existing infrastructure and key markets present a great opportunity and we look forward to taking advantage of as we seek to create and grow a successful, sustainable and high-returning global lithium business.”