Option exercised to establish Joint Venture between Ardiden and Great Northern Lithium Pty Ltd to progress the Company’s strategically located lithium portfolio in North America

Ardiden

Great Northern Lithium exercises option to form lithium joint venture. (Credit: Ardiden Limited)

Gold explorer Ardiden Limited (‘Ardiden’ or ‘the Company’) (ASX: ADV) is pleased to advise that Great Northern Lithium Pty Ltd (GNL) (to be renamed Green Technology Metals Limited) (GTM) has exercised its Option to acquire 80% of Ardiden’s hard rock (spodumene) lithium portfolio and establish a Joint Venture with Ardiden pursuant to the terms sheet announced on 6 May 2021.

GTM is headed up by a highly experienced lithium management group with a demonstrated track record of successfully developing lithium projects around the world. This group includes Mr John Young as Non-Executive Chairman and Mr Cameron Henry as Non-Executive Director. Mr Young was Exploration Manager, Technical Director and Non-Executive Director of Lithium producer, Pilbara Minerals Ltd (ASX: PLS). Mr Henry is the founding Managing Director of engineering firm, Primero Group Limited. He led the Company’s strategic and operational direction resulting in its successful listing on the ASX, further rapid growth, and eventual acquisition by NRW Holdings Ltd (ASX: NRW) in 2020. Mr Henry has over 20 years of industry experience in the development and delivery of lithium processing facilities in Australia and North America.

GTM has secured initial funding, which includes a cornerstone subscription from leading global natural resources investment business, AMCI Group. AMCI is a US-based privately held group that invests in and operates industrial businesses focused on natural resources, transportation, infrastructure, metals and energy. AMCI has invested over $1.7 billion in 40 industrial companies. AMCI’s existing portfolio consists of 21 companies located around the world with approximately 8,000 employees and over $6 billion in annual revenue.

AMCI uses its extensive operational and management experience to support its investments and assist management to build equity value through organic expansion, mergers and acquisitions and operational enhancements.

GTM Non-Executive Chairman, Mr John Young, commented: “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 GTM lithium business. The team we have put together has extensive experience and a proven track record in the industry across exploration, development, and operations. We are also well supported by trusted consultants and advisors to assist with executing our core strategy. The combination of a high-quality asset base in close proximity to existing infrastructure and key markets presents a great opportunity which we look forward to taking advantage of as we seek to create and grow a successful, sustainable and high-returning global lithium business”.

GTM is currently preparing its in -principle advise submission to the ASX for a proposed listing via Initial Public Offering (IPO) as Green Technology Metals. The proposed ASX ticker is to be GT1. Subject to obtaining necessary approvals, GTM has indicated its current intention is to offer access for Ardiden shareholders to the Initial Public Offering (IPO) raising via a priority offer but there is no guarantee that the offer will eventuate. The IPO prospectus will be made available when the securities are offered and that anyone wanting to acquire the securities will need to complete the application form in the prospectus.

The Joint Venture formation on the lithium assets delivers the following benefits to Ardiden:

  • A$200,000 cash for GTM’s exclusive due diligence period (already received);
  • A$1,500,000 cash payment at Completion;
  • A$7,000,000 staged cash instalments (9 and 18 months from Completion) – or at GTM’s election, the equivalent in shares; and
  • Accelerated exploration and advancement of the lithium assets.

Ardiden is preparing a notice of meeting to secure shareholder approval for the transfer of the assets in accordance with Listing Rule 11.4.1 (b).

The partial sale of its lithium portfolio provides ADV with additional capital to explore its Pickle Lake Gold Project while maintaining exposure to the Lithium sector and EV battery market.

Source: Company Press Release