- Riversgold (RGL) is set to secure a 70 per cent interest in the Mt Weld rare earth element project in WA via a farm-in and joint venture agreement with Corcel
- Riversgold will pay Corcel a non-refundable $30,000 for the tenement, and will further pay $500,000 during the first earning period to lock in a 50 per cent stake
- The company can then pay a further $1 million within 12 months to earn an additional 20 per cent interest
- CEO Julian Ford says as the company aims to begin drilling Mt Weld this quarter as the tenement is already granted
- Shares in Riversgold is up 7.14 per cent, trading at 3 cents as of 11:50 am AEDT
Riversgold (RGL) has entered into a farm-in and joint venture agreement with Corcel to secure a 70 per cent interest in the Mt Weld rare earth element project in Western Australia.
The company will pay Corcel a non-refundable payment of $30,000 for the tenement, and has agreed to fund $500,000 during the first earning period to lock in a 50 per cent stake.
Following the first earning period, Riversgold can then pay a further $1 million within 12 months to earn an additional 20 per cent interest.
Alternately, both parties can contribute to expenditure in proportion to their respective interests of 50 per cent each.
Should RGL wish to withdraw during the first earning period of 12 months, RGL would have to spend a minimum of $100,000 within the first six months or pay the balance of the $100,000 in cash to Corcel.
The tenement covers 171 hectares and is predominantly covered by recent transported sediments, which obscure the underlying geology. The area is located 1.4 kilometres west-north-west from a Lynas Rare Earths (LYC) project.
It holds four discrete undrilled magnetic features which could potentially represent carbonatite intrusives.
CEO Julian Ford said the company is aiming to drill Mt Weld in this quarter as the tenement is already granted.
Shares in Riversgold was up 7.14 per cent, trading at 3 cents as of 11:50 am AEDT.