Riversgold acquires key licence to expand gold project
Key points
- Riversgold signed a binding agreement to acquire a 100% interest in exploration licence E25/594 from a subsidiary of Black Cat Syndicate.
- Black Cat Syndicate will acquire equity in Riversgold through a share-based consideration component upon completion of the transaction.
- The acquisition expands the footprint of the Northern Zone Gold Project nearly 15-fold, from 0.82km2 to 12.82km2.
Riversgold (ASX:RGL) signed a binding agreement on Nov. 4 to acquire full ownership of exploration licence E25/594 from a subsidiary of Black Cat Syndicate (ASX:BC8).
The acquired tenement encompasses 12 square kilometres surrounding the company's existing 0.82-square-kilometre Northern Zone project on three sides.
Because the announcement contained no formal executive commentary, the agreement moves straight into implementation without official quotes.
The company stated that the transaction includes a first right of refusal for Black Cat Syndicate to process ore at its facilities, while Riversgold plans to begin air core drilling on the western extension.
Following the announcement, the Riversgold share price was unchanged at $0.007.
The acquisition follows the submission of the Northern Zone Mine Development and Closure Proposal on Sept. 30.
Historical drilling on the newly acquired licence includes 254 shallow rotary air blast holes out of 299 total drill holes.
