Key Highlights

  • Consideration of A$2.2 million for 80% of Mt Sholl is now payable in four instalments if Forgent exercises its option.
  • The option is due by 14 November.
  • Half of the shares in each instalment are priced at the ten-day volume-weighted average before exercise.
  • Forgent PLC is London-listed, not an ASX entity.

Raiden Resources (ASX:RDN) has revised the payment terms of its option and sale agreement with London-listed Forgent PLC over the potential sale of an 80% interest in the Mt Sholl nickel-copper-platinum group elements project in Western Australia.

Under the original agreement, announced in June 2026, consideration of A$2.2 million, half in Forgent shares and half in cash, was payable immediately if Forgent exercised its option. The total is unchanged, but it would now be paid in four instalments: on exercise, and three, six and nine months afterwards. All other terms remain the same.

The variation is not an exercise of the option. Forgent still has to decide whether to proceed, and Raiden has agreed to extend the option period by one week to 14 November 2026.

What Raiden would actually receive

The gross figure includes A$300,000 payable to Welcome Exploration Pty Ltd, a co-vendor, which is paid within the first instalment. Net of that, Raiden would receive A$1.9 million, comprising A$1.0 million in cash and A$900,000 in Forgent shares.

The first instalment would be the largest, at about A$794,000 gross, including the Welcome payment, with about A$256,000 in cash and A$238,000 in shares going to Raiden. Each of the three later instalments would be about A$469,000 gross, with roughly A$248,000 in cash and A$221,000 in shares to Raiden.

The share component

Half of the shares in each instalment would be priced at the ten-day volume-weighted average price before exercise, and the other half at the ten-day average before the relevant issue date. Half of the shares issued in each instalment would also be subject to a six-month lock-in.

That structure exposes Raiden to movements in Forgent's share price over an extended period. If Forgent's shares fall, the value of shares already received, particularly those locked in, would decline. If they rise, Raiden would benefit. Either way, the eventual value realised may differ from the headline figure.

A worked example

Consider the potential timing in practice. If Forgent exercised on 14 November, Raiden would receive its first cash and shares immediately, with the remaining instalments falling due around February, May and August 2027. Shares from the first instalment subject to the lock-in could not be sold until about May 2027. Raiden would therefore hold Forgent Equity for much of next year, and the final cash payment would arrive roughly nine months after exercise.

Protection for the vendors

To reduce the risk of non-payment, Raiden's Subsidiary Pilbara Gold Corporation and Welcome Exploration would hold security over Forgent's 80% interest in the Mt Sholl tenements until all four instalments are paid in full. That is a sensible safeguard, because it gives the vendors recourse to the asset if later payments are missed.

Why the deal matters to Raiden

The original agreement was described as worth up to A$2.25 million plus a free carry. A free carry typically means the seller's retained interest, here 20%, does not have to contribute to exploration costs for a period. For a company, A$1.9 million in net consideration would be meaningful, and the free carry preserves exposure to any discovery at Mt Sholl.

The staged structure, however, means less cash arrives upfront. Investors will want to understand how this affects Raiden's funding of its other projects, which include the Andover South lithium project in Western Australia and several projects in Bulgaria. Raiden describes itself as a dual-listed base metals and gold explorer.

What to watch

The key event is Forgent's decision by 14 November. If it exercises, the first instalment would follow immediately. If it does not, Raiden retains the whole project and would need to consider other options. Neither party has explained publicly why the payment schedule was changed so close to the deadline.