Ardiden Limited (ASX: ADV) has confirmed that Green Technology Metals Limited (ASX: GT1) has exercised its right to acquire a further 29% interest in the Lithium Joint Venture (JV) for the Seymour Lake, Root Lake and Wisa Lake assets in northwest Ontario, Canada.
As outlined in the original agreement, in exchange for the additional 29% JV interest, GT1 has now issued 4,049,520 fully paid ordinary shares to Ardiden valued at A$3.5M based on the 5-day VWAP of GT1 shares up to and including March 25, 2022. This payment will take the Lithium Joint Venture interests to 80% GT1 and 20% ADV, with Ardiden’s 20% interest continuing to be free carried by GT1 to the earlier of completion of a positive Bankable Feasibility Study or a GT1 Decision to Mine.
In addition, under the JV, each party retains off-take / marketing rights in the same percentage as their respective JV interest. The option, which was exercised early by GT1, results in Ardiden now owning 13,049,520 fully paid ordinary shares in GT1 or 6.47% of the shares on issue. The Shares have a market value of ~A$11.7M as at close of business on March 25, 2022.
The direct 20% JV interest and ~13m shares in GT1 provides strong continued exposure to the exploration and development of the JV projects and industry dynamics, while allowing Ardiden to focus solely on the systematic gold exploration at its District Scale Pickle Lake Gold Project in the well-endowed Uchi Geological Sub province of north-west Ontario, Canada, where drilling commenced in January 2022.