Riversgold Ltd (ASX:RGL) directors have demonstrated their support for the company’s gold strategy by participating in a rights issue which has raised $1.51 million.
Executive director Justin Boylson and non-executive director Michael Davy have both spent $10,000 to acquire 1 million shares.
Both directors have now doubled their holdings to 2 million with these held in indirect interests.
The 1:1 rights issue closed on November 7, 2019, with funds to be used to further explore the company’s existing projects in Western Australia and Alaska and to seek complementary opportunities.
Allocation of funds
The company will allocate $700,000, or 46%, of the funds to WA exploration and $300,000, or 20%, to Alaskan exploration with 7% for other exploration, 21% for working capital and 6% for the expenses of the offer.
The company’s exploration activities over the past 12-18 months have been primarily focused on its gold projects in the Eastern Goldfields of Western Australia the Tintina Gold Province in southwest Alaska, US.
Kurnalpi drilling
In Western Australia, drilling campaigns were completed during the year at the Farr-Jones, Queen Lapage and Cutler prospects within the Kurnalpi Project.
At the Cutler prospect, drilling returned several encouraging narrow, high-grade gold intersections.
Drilling beneath lake sediments at the Queen Lapage prospect has delineated a large-scale gold anomaly within a package of highly prospective host rocks, indicating the potential presence of a gold mineralised system.
The South West Alaska Project comprises the Luna-Quicksilver, Midway and Gemuk properties where Riversgold is targeting large-scale intrusive-related gold deposits.