Riversgold Ltd (ASX:RGL) has amended the deal with UK-based New Generation Minerals Ltd (NGM), announced on August 4, 2023.
Back in August 2023, Riversgold announced that it had signed an MoU with NGM for the latter to acquire nickel and cobalt rights over Riversgold's Kurnalpi tenements.
The tenements are around 50 kilometres east of Kalgoorlie over the Randall Shear, and proximal or contiguous with NGM's Lake Yindarlgooda Nickel-Cobalt Project.
Leveraging Riversgold’s holdings
The aim was to leverage Riversgold's tenement holdings to benefit its shareholders at no additional cost, while also providing the company direct exposure to the burgeoning critical battery metals sector through a partnership with NGM, an emerging nickel developer.
The agreement involved NGM acquiring exploration rights for nickel and cobalt within a 364-square-kilometre package of tenements owned by Riversgold, in exchange for cash and shares in NGM or a related corporate entity anticipated to list on the ASX.
This arrangement aligned with the company's strategy to capitalise on its strategic tenement holding over the Randall Shear greenstones.
The amended sale agreement with NGM now relates only to the nickel and cobalt rights over one tenement (E28/3034) in RGL’s Kurnalpi tenement package in Western Australia, rather than the broader suite of tenements at Kurnalpi as previously announced.
"Cleaner deal"
Riversgold executive chair and CEO said: “This is a much cleaner deal than was originally envisaged back in August of last year.
"This tenement is the one that immediately adjoins NGM’s tenement in the Kurnalpi area and makes their Kurnalpi tenement package a great deal more attractive for their proposed ASX listing later this year."
NGM has the right to purchase the nickel and cobalt rights within this tenement by issuing Riversgold $500,000 worth of shares in NGM’s proposed ASX-listed company (NGM’s ListCo) within 12 months.
If NGM’s ListCo is not listed on the ASX within 12 months, the deal will be null and void.