Raiden Resources Secures Option to Sell 80% of Mt Sholl Project for Up to A$2.25 Million

Strategic Sale of Majority Stake in Mt Sholl

Raiden Resources Limited (ASX:RDN) has entered into a binding Option and Sale and Purchase Agreement with Forgent PLC (LSE:FORG.L) for the potential sale of an 80% interest in its Mt Sholl nickel-copper-PGE project in Western Australia. The option grants Forgent five months to exercise the right to acquire the stake, subject to customary conditions including regulatory approvals.

The total consideration for the 80% interest comprises an initial A$100,000 in Forgent shares as option consideration, followed by a further A$2.7 million payable upon option exercise, split evenly between cash and Forgent shares based on a 10-day volume weighted average price at exercise. Raiden has already received A$10,000 cash and A$40,000 in Forgent shares as part of the option consideration.

Retaining Exposure While Reducing Costs

While the deal would see Raiden divest the majority interest in Mt Sholl, it retains a 20% free-carried interest through up to A$4 million in direct project expenditure. Beyond this free-carried period, Raiden’s stake will be subject to dilution under a standard joint operating agreement, with a fallback 1% net smelter royalty if interests fall below 10%. This structure allows Raiden to maintain exposure to the project’s underlying commodities, nickel, copper, and platinum group elements, without bearing the full development costs.

The transaction is expected to bolster Raiden’s cash position by approximately A$1 million on option exercise, complementing its reported cash balance of A$12.23 million as of 31 March 2026. Additionally, the deal reduces holding and management costs associated with the non-core Mt Sholl asset, enabling Raiden to focus on priority projects such as the Crixás Gold Tailings Project and potential new acquisitions.

Deed of Variation with Previous Owner Welcome Exploration

To facilitate the transaction, Raiden has entered into a deed of variation with Welcome Exploration Pty Ltd, the former owner of Mt Sholl. Welcome has agreed to waive certain rights, including a A$5 million payment linked to a mining decision and a 20% free-carried gold interest. In exchange, Welcome will receive A$200,000 in Forgent shares and A$100,000 in cash, payable only if Forgent exercises the option. Should the option lapse, no payments will be made to Welcome.

This amendment streamlines the ownership structure and clears previous encumbrances, smoothing the path for the transaction’s completion.

Consistent Approach to Portfolio Management

Raiden’s move to divest a majority interest in Mt Sholl fits its broader corporate strategy of monetising non-core assets to reduce costs and strengthen its balance sheet. The company has previously completed divestments including the sale of Velocity Minerals shares from its Zlatusha property in Bulgaria and non-core project data to Cloudbreak Discovery PLC, generating modest proceeds and reducing exposure.

Meanwhile, Raiden continues to advance its core assets, notably the Crixás Gold Tailings Project in Brazil, where near-term drilling and investment decisions are underway. The company’s strong cash position supports ongoing exploration and acquisition efforts.