Riversgold Ltd (ASX:RGL) has moved to end a six-year joint venture with Serendipity Pty Ltd through a re-distribution of tenement ownership in the Kurnalpi Project in the Eastern Goldfields of Western Australia.
Both parties have agreed and signed a new agreement, under which RGL will increase its ownership in the Queen Lapage project tenements (E25/538 and E28/2580), the Venetian project tenement (E25/540) and the Jaws project tenement (E25/539) from 80% to 100%.
In exchange, Serendipity will have 100% ownership – previously 20% – of the Farr Jones project tenement (E25/541) and receive $200,000 in cash payment and 5,793,743 in RGL shares, which will be subject to six months escrow.
Highly-prospective area
“Riversgold has had a very large tenement holding at Kurnalpi since its IPO on the ASX in 2017 and the company sees the Kurnalpi area as being highly prospective for gold, nickel and rare earths,” RGL chairman David Lenigas said.
“This Serendipity deal increases RGL’s ownership on key tenements at Kurnalpi to 100%.”
Four of the tenements under the new agreement are currently contested but RGL has assured that its board will defend the ownership of the tenements.
Untested
The Kurnalpi tenement package is divided into four sub-projects with a number of targets:
- Yilgani;
- Kurnalpi North - Acra South, Coffee Swamp, Queen Lapage, Reef Tank, Ella/Farr-Jones and Cutler;
- Kurnalpi South - Jaws, Round Hill, Angel Fish; and
- Alloy JV.
The tenements have a long history of exploration but in some areas drilling has been shallow and sporadic, leaving a number of highly-prospective targets untested.