A new Australian lithium exploration company wants to tap into the global clean energy movement, starting in northwestern Ontario.
Shareholders for Ardiden, a gold exploration company operating in the Pickle Lake area, have agreed to sell up to 80 per cent ownership of its lithium projects in the region to Green Technology Metals, formerly known as Great Northern Lithium Pty.
Ardiden, which wants to focus exclusively on its gold prospects outside Pickle Lake, signed an option agreement with Great Northern last May.
The two Australian companies are creating a joint venture partnership that will see Green Technology Metals (GTM) buy a majority stake in a collection of lithium properties that will put $9.2 million in Ardiden's pocket, through a staged-payment schedule, to use for gold exploration in Pickle Lake.
Ardiden shareholders voted in favour of the transaction this week, which means an upfront cash payment of $1.5 million from GTM. Ardiden will initially retain 49 per cent ownership of these properties.
Lithium is used in the making of lithium-ion batteries used in the electric vehicle industry.
The lithium assets being transferred to GTM consist of three high grade spodumene projects; Seymour Lake, Root Lake and Wisa Lake.
Seymour, located at the north end of Lake Nipigon, contains a resource of 4.8 million tonnes of ore, grading 1.25 per cent lithium oxide. Wisa is in the Fort Frances area, near the border with Minnesota, and Root Lake is southwest of Pickle Lake.
Spodumene is the most widely used type of lithium, mined because of its high lithium content.
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Ardiden has 870 square kilometres of exploration property outside Pickle Lake with 22 identified gold deposits and prospects in the former northwestern Ontario mining camp.
In a statement, Ardiden Chair Neil Hackett called the transaction a "great outcome" for his shareholders with $9.2 million being deposit in the bank to spend on exploration at Pickle Lake. His company will still maintain an equity stake in GTM along with representation on their board of directors.
Green Technology Metals is reportedly raising $24 million to fund drilling and other exploration activities in the northwest.