Ardiden Ltd. said Feb. 19 that it entered into a binding agreement with Long State Investments Ltd. for a flexible funding facility of up to A$15 million to be drawn over the next two years.
Under the terms, the company may place shares to Long State Investments over the next two years against the facility amount of up to A$15 million.
The proposed shares will be priced at the average of the two daily volume-weighted average price of the company shares during the 10 consecutive trading days beginning on the trading day following the placement notice date.
Ardiden will also issue three-year options to Long State Investments to buy A$2.0 million worth of shares at 2.8 cents each.
CEO Brad Boyle said, "Obtaining the LSI Facility is a great outcome for the Company, as, irrespective of the current market conditions, the company now has secured the funding to continue with the rapid development of the Seymour Lake lithium project and focus on advancing discussions with potential offtake partners, completing the Environmental Study and completing the Feasibility activities."
According to an October 2017 estimate, the North Aubry deposit at Seymour Lake hosted indicated and inferred resources containing an aggregate 8,200 tonnes of lithium.