Riversgold Ltd (ASX:RGL, OTC:RVSGF) has struck a Right to Mine and Co-Operation Agreement with MEGA Resources that will see the Kalgoorlie-based mining services provider fully fund development and operations at the Northern Zone Gold Project in Western Australia.
The deal gives MEGA the right to mine at Northern Zone, with profits split 50/50 between MEGA and the project owners — Riversgold (80%) and Oracle Power PLC (AIM:ORCP) (20%). Importantly, Riversgold and Oracle will not be required to contribute any up-front capital.
Fully funded path to production
Under the agreement, MEGA will cover 100% of development and mining costs, including haulage, geological and engineering services, and approvals management. A portion of project profits — 10% on a monthly basis — will be reinvested into grade control and step-out drilling to support expansion.
MEGA is aiming to break ground at Northern Zone in the January quarter of 2026, subject to final tenement permissions, mining approvals, and a binding ore purchase agreement with a third-party processing mill.
Riversgold chairman David Lenigas said the partnership marked a major milestone for the company.
“An extensive amount of drilling has occurred at Northern Zone since RGL took over the exploration efforts on the project in 2023,” Lenigas said. “This transaction with MEGA Resources, after a thorough due diligence process by them, will now move this gold project along significantly. We will be aiming to see MEGA's mining equipment on site early next year.”
Established mineralisation and exploration upside
The Northern Zone project, located 25 kilometres from Kalgoorlie’s Super Pit, has already returned significant intercepts, including 18 metres at 4.14 g/t gold from 36 metres and 10 metres at 8.89 g/t from 46 metres.
Location of Northern Zone Gold Project in relation to the Kalgoorlie "Super Pit".
The project has an exploration target of 200 million–250 million tonnes grading 0.4–0.6 g/t gold, for a conceptual range of 2.5 million–4.8 million ounces. Further drilling is planned to test extensions of the known mineralised porphyry system, which is about 600 metres wide and 500 metres deep.
Riversgold also draws comparisons between Northern Zone and Saturn Metals Ltd (ASX:STN)’s Apollo Hill Project, which hosts more than 2 million ounces of gold, suggesting potential for a large-scale, low-grade heap leach operation.
Capital raise to support ongoing work
In tandem with the MEGA agreement, Riversgold has secured firm commitments for a $1.8 million placement to sophisticated investors at $0.0045 per share. Proceeds will fund exploration at Northern Zone and the company’s other Australian assets, as well as business development and working capital.
Shares from the placement are expected to be allotted on October 6, 2025.