The company plans to drill test lithium prospects in the region. Pic: via Getty Images.
Tolga-backed Raiden raises $6m in popular placement to accelerate Pilbara lithium hunt
Mining
share
- Exploration planned at Andover North and Andover South, Mt Sholl and Arrow projects
- Andover sandwiches Azure Minerals’ flagship project in the Pilbara
- Funds may be used to acquire 100% of lithium rights at Arrow
- Major shareholder Tolga Kumova commits $297k to placement
Red hot Raiden receives firm commitments to raise $6m via a share placement at 2.2c per share – a premium to the 5-day VWAP — to progress exploration at its portfolio of lithium, nickel and gold projects in the WA Pilbara.
Raiden Resources (ASX:RDN) is sitting on a 440% gain in 2023, thanks to its Andover North and South projects which sandwich Azure Minerals’(ASX:AZS) Andover project.
Azure has flagged an exploration target between 100Mt and 240Mt grading at 1-1.5% Li20 at Andover, which MD Tony Rovira says places the project “within the top 10 lithium deposits in the world.”
Next door, early-stage exploration by Raiden has identified outcrop across a ~3.5-kilometre long, 600m wide pegmatite field, with some individual pegs up to 30m wide at surface.
Notable rock chip results from a recent reconnaissance trip at Andover North and Andover South included 2.22% Li2O (R21160), 0.98% Li2O (R21163), and 0.37% Li2O (R21168).
Accelerating exploration plans
No surprise then that Raiden is looking to test its project’s lithium potential, with more mapping and sampling currently underway.
The company had initially sought to raise $5m, but due to strong interest, it has elected to accept oversubscriptions of an additional $1m (subject to shareholder approval).
The board has also resolved that the shortfall under the entitlements issue conducted in April at $0.003 per share will not be issued – resulting in Raiden raising around 10x the funding for nearly the same dilution.
“These funds will allow us to mainly evaluate and advance the company’s lithium project opportunities, including drill testing of our most important lithium prospects,” managing director Dusko Ljubojevic said.
Notably, famous small cap investor Tolga Kumova (through Kitara Investments) has committed to maintain a substantial holding status via a ~$297k placement.
The placement represents a small discount to the previous closing price and a 10.2% premium to the 5-day VWAP of 2c.
Potential to acquire Arrow lithium rights, assess Mt Sholl
Money raised will also be used to progress the Mt Sholl and Arrow projects, also in the Pilbara.
The funds may be used acquire 100% interest in the lithium rights at the Arrow project (or to earn-in to 85% interest), where historic exploration has identified fertile and fractionated granitic intrusions, which could produce mineralised lithium-caesium-tantalum bearing pegmatites.
The company already owns 100% of all other mineral rights at the project, which sits just 30km along strike from De Grey Mining’s (ASX:DEG) Hemi gold project.
Raiden is currently conducting a mapping and sampling program at the project.
Mapping of outcropping pegmatites is also underway to assess the lithium potential of the advanced Mt Sholl nickel-copper-PGE project, which has a resource of 23.4Mt at 0.60% nickel equivalent or 1.54% copper equivalent.
Meanwhile a metallurgical test work program has commenced on the nickel-copper-PGE resource, with results to be made available “in the near future”.
This article was developed in collaboration with Raiden Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
