- Riversgold (RGL) secures deal to acquire seven lithium projects in Quebec, Canada
- Riversgold is set to acquire full ownership of seven strategically located lithium project blocks collectively named ‘Abigail’
- An exploration program is to start in two weeks with year-round access
- RGL shares are up 8.33 per cent, trading at 1.3 cents at 12:20 pm AEST
Riversgold (RGL) has secured a deal to acquire seven lithium-rich projects in Quebec, Canada.
The company plans to commence exploration activities in September.
Riversgold will gain full ownership of these seven project blocks collectively named ‘Abigail,’ strategically located between Critical Element’s Rose lithium deposit and Nemaska Lithium’s Whabouchi deposit.
“The Abigail lithium project in Quebec is blessed with year-round access for exploration and the current exploration program, planned to commence in two weeks, will be managed by the same exploration team who identified the project’s potential lithium anomalies back in 2016/17,” RGL Chair David Lenigas said.
The company’s strategy for the project focuses on identifying potential lithium-rich pegmatites within granites, similar to the Rose deposit, or within greenstones, akin to the Whabouchi deposit.
During the due diligence process, RGL will provide C$75,000 (A$85,000) in cash, along with funding for an exploration program valued at C$200,000.
Additionally, it will issue 16.4 million RGL shares priced at 1.4 cents per share.
Upon the successful completion of due diligence, RGL will pay C$75,000 in cash and offer 73.8 million RGL shares at the same price, in addition to a two per cent net smelter return on all minerals mined from the projects.
RGL shares were up 8.33 per cent, trading at 1.3 cents at 12:20 pm AEST.