- Riversgold (RGL) is looking to raise approximately $1.5 million via a placement for its Kurnalpi Project in the Eastern Goldfields of Western Australia
- Under the placement, roughly 139 million shares will be issued at a price of 1.1 cents each, along with one option for every two placement shares
- The option will be exercisable for three cents each under a three-year term
- Funds from the placement will be used for geological and geophysical works, as well as a drilling program at Kurnalpi
- Riversgold is trading 31.3 per cent higher and shares are selling for 2.1 cents each
Riversgold (RGL) is looking to raise approximately $1.5 million via a placement for its Kurnalpi Project in Western Australia.
The Kurnalpi tenement package is located in the Eastern Goldfields and comprises of four sub-projects: Yilgani, Kurnalpi North, Kurnalpi South, Alloy JV.
Under the placement to sophisticated and professional investors, roughly 139.3 million shares in total will be issued at a price of 1.1 cents each. This represents a 15.5 per cent discount to the 15 trading day volume-weighted average price.
Approximately 69.7 million free attaching options will also be issued on a one-for-two basis. These will be exercisable for three cents each and expire in three-years.
The placement will be made up of two tranches. The first will comprise of more than 65.5 million shares to raise $720,744 before costs. These shares will be issued upon receipt of cleared funds.
The second tranche consists of close to 73.8 million shares to raise $811,755 before costs and is subject to shareholder approval. Options under both tranches are also subject to shareholder approval at a meeting to be convened in early July.
Shareholder approval will also be sought for directors Simon Andrew, Justin Boylson and Michael Davy to participate in tranche two of the placement for a total of 10 million shares at 1.1 cents each.
Funds from the placement will be used in an upcoming exploration program at Kurnalpi. Specifically, geological and geophysical work on the Queen Lapage, Cutler and Farr-Jones corridor which lies within the Kurnalpi North sub-project.
Additionally, the funds will go towards a drilling program on the Eastern Goldfeilds projects.
Riversgold is trading 31.3 per cent higher and shares are selling for 2.1 cents each at 11:30 am AEST.