14 Mar Australian junior Raiden Resources strikes momentous deal with Rio Tinto
Raiden Resources (ASX:RDN) will enter a joint venture with Rio Tinto (ASX:RIO) after the Australian junior signed a US$31.5 million agreement for its exploration licenses in Serbia.
The deal comprises of three prospective copper-gold licenses, namely the Zapadni Majdanpek, Majdanpek Pojas and Donje Nevlje licenses in the prolific Western Tethyan Metallogenic Belt in Eastern Europe.
The JV and earn-in arrangement will see Rio gain a 51% participating interest in the licenses for $2.5 million in a period of three years under stage one of the agreement.
After stage one, the Anglo-Australian giant will be able to earn a 14% interest for $9 million in the three-year period and an additional 10% stake for $20 million in the three-year period after stage two.
Speaking exclusively to RGN, Raiden’s executive director Dusko Ljubojevic said: “The Rio Tinto joint venture is a significant milestone for the company and validates the potential for our portfolio to host potential ‘Tier 1’ mineral deposits.
“The JV also allows us to focus our attention and funding towards the retained projects like Stara Planina where we have large anomalies already defined and a drill programme scheduled for 2018.”
Shares in Raiden soared 62% on the news, with shares reaching a high of 4.7 cents on the ASX.