Riversgold Ltd (ASX:RGL) has added to its cash holdings by drawing $100,000 from convertible notes issued by Greenwich Group Pty Ltd.
The group is a related entity of a director of Riversgold substantial shareholder Greenwich Equities Pty Ltd, John Hilton.
Greenwich Group’s Riversgold notes are due in 18 months, with cash interest on the principal amount owing to apply at a rate of 5% per year, with the sum calculated on a monthly basis and payable 3-monthly in arrears.
READ: Riversgold reveals board and management changes
Riversgold can redeem the notes before they fall due or convert them into shares priced at either 2.2 cents each or a 20% discount to the 5-day volume-weighted average price on the issue of a conversion notice.
The higher priced of the two values would be used for a transaction.
READ: Riversgold outlines 11 kilometres of gold anomalism at Queen Lapage in WA
Western Australian explorer Riversgold reported its CEO and executive director Alan Kelly had resigned from the company six weeks ago, as revealed on March 26, 2019.
Riversgold later lodged proceedings against its former executive in the Supreme Court of Western Australia asking the court to set aside an April 9, 2019 post-resignation statutory demand from Kelly for $121,000 that he had allegedly claimed had fallen due as a payment in lieu of notice.
READ: Riversgold hits high-grade gold up to 6.72 g/t at Farr-Jones prospect in WA’s Eastern Goldfields
Riversgold had $348,000 cash at the end of the March quarter of 2019 and announced in on April 17, 2019 it planned to spent $25,000 on exploration in the June quarter of 2019.
Chairman and non-executive director Rod Webster has taken up an interim executive role while Riversgold company secretary Kevin Hart has joined the board as a non-executive director.
Riversgold securities added 0.1 cents, or 3.85%, by mid-afternoon to rest at 2.7 cents.