Ardiden Limited (ASX:ADV) will assume 100% ownership of Pickle Lake Gold Project in northwest Ontario, Canada, after exercising its option to acquire Murchison Minerals Ltd’s (CVE:MUR) 51% interest in the highly prospective project.
The company has notified Murchison that after fulfilling all option conditions and a robust review, including due diligence drilling, Ardiden has exercised its option to acquire Murchison’s interest.
Murchison will receive a 1% net smelter royalty from any future gold production.
Advantage of exposure to gold price
In May 2019 Ardiden appointed Rob Longley as chief executive officer.
Since then Longley has worked with the board to develop the company’s primary objective, which is to take advantage of exposure to gold price appreciation in tandem with exposure to the electric vehicle market through lithium assets.
Details of exercising the option
In July 2018 the company acquired White Metal Resources Corp’s (CVE:WHM) interest in the Pickle Lake project, including a 49% interest in a JV with Murchison over the Kasagiminnis Lake property and part of the Dorothy Dobie property.
Ardiden has satisfied the conditions to acquire the remaining interest in the Pickle Lake JV by incurring exploration expenditure of C$1.2 million.
The company will own 100% of the JV assets, including Kasagiminnis Lake and part of Dorothy Dubie.
On the exercise of the option with Murchison, Ardiden is required to:
- Make a cash payment to White Metal of C$15,000;
- Issue to White Metal 1 million fully paid and ordinary shares in Ardiden; and
- Assign to White Metal the first right to acquire Murchison’s royalty as described in the option agreement.
Ardiden is excited to secure its landholding within the Pickle Lake Gold Camp to take advantage of the rallying gold price and positive sentiment for gold exploration and resource growth, all from within its existing strong cash reserve.