Ardiden Limited (ASX: ADV) (Ardiden or the Company) is pleased to advise that it has received firm commitments for a placement (Placement) of 291,666,666 fully paid ordinary shares (Shares) to eligible professional and sophisticated investors to raise up to A$3.5 million before costs.
Shares under the Placement will be issued at A$0.012 (Placement Price), representing a 1.55% discount to Ardiden's 10-day volume weighted average price (VWAP) and a 33.33% discount to Ardiden's last traded price of $0.018 on 10 July 2020. Additionally, the Company has indications of intentions to accept transfers of up to 88,000,000 Shares through the set-off of the collateral shares previously issued under the Controlled Placement Agreement announced on 20 December 2019 (Collateral Shares) at the Placement Price.
Ardiden's Directors intend to subscribe for 8,333,333 Shares ($100,000) in the Placement, subject to shareholder approval which is expected to be sought at a General Meeting in August 2020.
New funds will be used to advance Ardiden's exploration activities, including to progress drilling and exploration work programmes at its predominantly 100%-owned Pickle Lake Gold Project in Ontario, Canada. Bell Potter Securities Limited (Bell Potter) is acting as Lead Manager to the Placement.
Commenting on the Placement, Managing Director & CEO, Robin Longley, said: 'This is a significant milestone for Ardiden's as it will soon be able to properly explore its massive, continuous landholding at Pickle Lake. We will do so applying smart exploration techniques and a systematic approach. This funding will re-shape our current summer drilling programme at the Kasagiminnis Gold Deposit and expand options for drilling at Kasagiminnis and our other Gold Deposits and Prospects at the Pickle Lake Gold Project. Investors who have witnessed the success of Great Bear Resources (TSX-V-GBR) at the Dixie Gold Project nearby, recognise the opportunities that exist in this under-explored Uchi Geological Subdivision of north-western Ontario'.
Non-Executive Chairman, Neil Hackett, also commented: 'The support that we have received from significant resource specialist investors is extremely pleasing, and an endorsement of the prospectivity of our dominant land package, which includes multiple 100%-owned gold Deposits and Prospects, that Ardiden has accumulated at Pickle Lake since 2017'.
Background to the Pickle Lake Gold Project
Ardiden's connected gold Properties at Pickle Lake cover 664km2 , an area 100km x 30km which represents a districtscale package. With predominately 100%-ownership, Ardiden is in a strong position to grow its JORC Resources at its existing gold deposits and explore systematically for new gold discoveries at its extensive pipeline of Brownfields and Greenfields prospects.
Details of the Placement
Shares under the Placement will be issued at A$0.012 (Placement Price), representing a 1.55% discount to Ardiden's 10-day volume weighted average price (VWAP) and a 33.33% discount to Ardiden's last traded price of $0.018 on 10 July 2020. Other than in respect of Director participation, the issue of Shares under the Placement will be undertaken in a single tranche, utilising the Company's ASX Listing Rule placement capacity. 129,801,300 Shares will be issued under ASX Listing Rule 7.1A1 and 153,532,033 Shares will be issued within the Company's existing placement capacity under ASX Listing Rule 7.1. Settlement of the Placement is expected to occur on or about 21 July 2020, other than in respect to Director participation, which is subject to shareholder approval. Directors intend to take up a further 8,333,333 Shares. It is anticipated that in the coming days, Shares may be transferred through the set off of up to 88,000,000 Collateral Shares under the Controlled Placement Agreement announced on 20 December 2019, at the Placement Price. All Collateral Shares and Placement Shares issued will rank equally with existing fully paid ordinary shares.
Contact:
Rob Longley
Tel: +61 8 9322 7600
Email: info@ardiden.com.au
Forward Looking Statement
This announcement may contain some references to forecasts, estimates, assumptions and other forward-looking statements. Although the company believes that its expectations, estimates and forecast outcomes are based on reasonable assumptions, it can give no assurance that they will be achieved. They may be affected by a variety of variables and changes in underlying assumptions that are subject to risk factors associated with the nature of the business, which could cause actual results to differ materially from those expressed herein. Investors should make and rely upon their own enquires and assessments before deciding to acquire or deal in the Company's securities.
ARDIDEN LIMITED 
