Riversgold takes stake in Mt Weld REE Project - The Pick Online Magazine

Riversgold Limited (ASX: RGL) has entered into a Farm-in and Joint Venture agreement with London listed Corcel Plc to earn up to a 70% interest in their Mt Weld REE Project.

The Project features a granted mineral tenement (P34/4489), located only 1.4km west-north-west of Lynas Rare Earths Limited’s Mt Weld REO Mine near Laverton in Western Australia.

The rare earth global markets are very strong at present and as this tenement is already granted, we aim to be drilling Mt Weld this quarter,” Riversgold CEO, Julian Ford, said.

REE Potential Targets

The Mt Weld Project on tenement P34/4489 covers 171 hectares in size and straddles the mine access road to Lynas’s Mt Weld Mine. The tenement is predominantly covered by recent transported sediments obscuring the underlying geology, with four discrete undrilled magnetic features (T1-T4) which are interpreted to potentially represent carbonatite intrusives associated with the Mt Weld carbonatite intrusive complex 1.5km to the east.

The key terms of the transaction are:

• RGL to pay Corcel a non-refundable payment of A$30,000 on execution.

• RGL agrees to sole fund A$500,000 during the First Earning Period (the earlier of 12 months, expenditure met or withdrawal) to earn 50% of the Project.

• In the event RGL wishes to withdraw during the First Earning Period, RGL must spend a minimum of A$100,000 within the first six months or pay the balance of the A$100,000 in cash to Corcel.

• At the conclusion of the First Earning Period and following notice by RGL to commence the Second Earning Period from, Corcel may elect to either:
  • commence the Second Earning Period during which time RGL must sole fund a further A$1,000,000 within 12 months to earn an additional 20% interest in the Project; or
  • contribute to expenditure in proportion to their respective interests of 50% each under a joint venture agreement.

https://www.riversgold.com.au/