Riversgold (ASX:RGL) has added a ‘highly prospective’ 74km-square tenement application to its landholding in the Pilbara region of Western Australia.
The new tenement (ELA47/5069) lies along strike and 8km northeast of Azure Minerals’ (ASX:AZS) Andover lithium discovery.
Under a purchase agreement with privately owned Redstone Metals, Riversgold, which has a market capitalisation of $10.46 million, will pay $50,000 to Redstone within 5 days of executing the agreement.
Further, Riversgold will pay a deferred consideration of $150,000 worth of RGL fully paid ordinary shares at an issue price equivalent to its 10-day volume weighted average price (VWAP) 8 months after the execution of the deal or upon the grant of the tenement or withdrawal of the application, whichever comes first.
Following this announcement, Riversgold’s share price has climbed 54.54% to $0.016 as of 11:00am AEDT on 24 November.
Riversgold Chairman David Lenigas says this acquisition is ‘brilliant’ for the company as it covers a ‘considerable’ tenement in an area that is becoming a new lithium province.
“With the tenement’s location being so close to Karratha, exploration here can be almost year-round, something not always possible in the Pilbara region.
The geology of this tenement appears to be somewhat similar to Andover, with the difference being a lot of the ground is under shallow cover.
Following grant of this new tenement, the next steps will include geophysics programs designed to identify buried pegmatites which will then be tested with shallow bedrock drilling.”
“With the tenement’s location being so close to Karratha, exploration here can be almost year-round, something not always possible in the Pilbara region”
The new tenement covers a target zone where there is a bend in the structural corridor associated with a magnetic intrusion — a similar setting to the Andover lithium discovery.
Riversgold is a lithium explorer focused on making discoveries in the Pilbara and Yilgarn cratons of Western Australia.
As of 30 September 2023, the company had $2.914 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Riversgold
