Smart money flies into lithium junior Riversgold in $6 million placement
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Emerging lithium junior Riversgold has received a strong show of support from investors for its dual strategy exploring for the key battery metal in WA’s world class Pilbara and Yilgarn lithium fields, raising $6.09 million in a placement.
The raising will include the issue of almost 170 million new shares to institutional, sophisticated and professional investors at 3.6c a share, with smart money piling into the explorer ahead of key exploration campaigns at its WA projects.
The Canaccord Genuity-led placement will fund exploration at Riversgold’s (ASX:RGL) lithium-caesium-tantalum prospective projects, working capital and exploration at other projects under the Riversgold banner.
Executive chairman David Lenigas said the company is now well funded to “aggressively continue” its programs at the Tambourah project in the Pilbara and at its suite of tenements near Wesfarmers and SQM’s giant Mt Holland Mine in the Goldfields.
“We are delighted with the support shown for the Company’s exploration strategies, demonstrated by the strong interest for this capital raising,” Lenigas said.
“Riversgold is now very well funded to aggressively continue its programs at both the Tambourah Lithium Project in the Pilbara and the newly acquired Mt Holland package of tenements.
“This funding puts the Company in a solid fiscal position for 2023 and will enable the Company to accelerate its lithium targeted drilling efforts on two exciting fronts.”
Riversgold has wasted little time keeping the good work going, starting a new deep ground penetrating radar survey at its Tambourah project.
The idea is to outline new targets for drill testing at Tambourah, located around 160km south-east of Port Hedland and to the south of the giant Pilgangoora and Wodgina lithium mines.
Running alongside a reverse circulation drill program that began in late October and is expected to run until year’s end, the method has been highly effective identifying pegmatites in a previous survey.
It expands RGL’s fieldwork deeper into what is known as the “Goldilocks Zone”, beyond areas where pegmatites are evident at surface.
“Our focus to date has been on the north-west corner of the main tenement, where outcropping pegmatites have been identified,” RGL CEO Julian Ford said.
“This is only a small portion of a 16km corridor running through the tenement that we believe is fertile for large lithium-caesium-tantalum systems.
“Based on its effectiveness to date, we expect DGPR to be of significant help in determining which parts of the corridor to concentrate our exploration efforts.
“In the meantime, the Company is making plans to drill through to year end – weather permitting.”
A previous trial DGPR survey over the Ragdoll/Lion and Bengal Prospects in the north-west corner of the main Tambourah tenement increased the number of interpreted lithium-bearing pegmatites from 12 to 40, doubling the strike length from ~1.3km to ~2.7km.
The new survey will cover a roughly 1.1km2 portion of the Bengal prospect not included in that initial survey, and follow identified pegmatites at depth.
A second, expanded, survey is planned for Ragdoll and Lion in the first quarter of 2023.
The maiden RC drilling campaign at Tambourah intersected a 13m pegmatite interval with spodumene at depth, with the surface expression limited lepidolite bearing outcrops.
An anomaly identified in the DPGR survey had suggested the full size of the pegmatite, with assays currently being awaited.
The survey will begin this week with a seven day capture period and three week wait to process data.
This article was developed in collaboration with Riversgold, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.