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Raiden Resources (ASX:RDN) completes data reinterpretation for Kalabak Project, Bulgaria
  • Raiden Resources (RDN) has signed an option agreement to obtain a portfolio of gold and nickel projects in WA's Pilbara region
  • The company will have until the end of January 2021 to complete due diligence on the projects before exercising the option to acquire Pilbara Gold Corp (PGC)
  • The headline acquisition would be the Arrow gold project, which sits next to and along strike from De Grey Mining's Hemi discovery
  • PGC has agreed to make a strategic investment in Raiden, and has subscribed for $3 million in shares via a private placement
  • If Raiden opts not to proceed with the proposed transaction, no option fees are payable
  • Raiden Resources closed Tuesday's session 110 per cent green at 4.4 cents

Raiden Resources (RDN) has signed an option agreement to obtain a portfolio of gold and nickel projects in WA's Pilbara region.

The company will have until the end of January 2021 to complete due diligence on the projects before exercising the option to acquire Pilbara Gold Corp (PGC) and its assets.

Prospective portfolio

The headline acquisition would be the Arrow gold project, which sits next to and along strike from De Grey Mining's (DEG) Hemi discovery.

The Berghaus Shear Zone, which is associated with a number of the recent discoveries in the district, trends in a south-south-westerly direction for around 10 kilometres of strike within the project.

Raiden will undertake a geophysical targeting program based on available open-file magnetics and gravity data during the due diligence period to define potential structural targets and intrusions.

There are also a number of other projects on PGC's books which show promise.

The Boodalyerrie gold project hosts outcropping quartz vein systems up to 10 metres thick which historically yielded channel samples of up to three metres at
88.6 grams per tonne gold. PGC holds a 75 per cent interest in the project.

The wholly-owned Mt Sholl project is prospective for nickel, copper, platinum group elements and gold. The project has seen significant historical drilling with a number of promising intercepts and is close to existing processing facilities.

PGC also has a 75 per cent interest in the Yandicoogina gold project. This area is largely underexplored but exhibits similar geology to Calidus Resources' (CAI) nearby Warrawoona gold project. Rock chip sampling at one prospect has yielded samples up to 20.61 grams per tonne gold.

A number of other projects are included in the proposed transaction, including the Pyramid, Keep it Dark, Surprise, North Shaw, Myrnas Hill and Miralga Creek projects, which could add a further value to the acquisition.

The deal

If Raiden exercises the acquisition option, it will issue PGC shareholders a consideration of 207,778,750 shares, which is currently worth over $9.1 million.

PGC has, in return, purchased $3 million in Raiden shares through a share subscription for 230,769,230 shares at 1.3 cents each, representing a 27.4 per cent discount to the 15-day volume-weighted average price.

Raiden will also assume PGC's rights and obligations regarding the 75 per cent interests in the Pacton gold tenements if the option is exercised.

Raiden will require shareholder approval for the $3 million share subscription and the eventual exercise of the option.

If Raiden opts not to proceed with the proposed transaction, no option fees are payable.

Raiden Resources closed Tuesday's session 110 per cent green at 4.4 cents.


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