Riversgold Ltd (ASX:RGL) is eyeing a larger stake of the rare earth mining boom through a farm-in and joint venture agreement with UK-listed Corcel PLC (LSE:CRCL) which could see it earning up to 70% interest in the Mt Weld REE Project in Western Australia.
The Mt Weld Project on tenement P34/4489 covers 171 hectares and is 1.4 kilometres west-northwest of Lynas Rare Earths Ltd’s Mt Weld REE operations.
This tenement has four discrete undrilled magnetic features, which are interpreted to potentially represent carbonatite intrusives associated with the Mt Weld carbonatite intrusive complex 1.5 kilometres to the east.
“The rare earth global markets are very strong at present and as this tenement is already granted, we aim to be drilling Mt Weld this quarter,” Riversgold chief executive officer Julian Ford said.
The Mt Weld Project with the location of the four magnetic features, T1-T4, and its proximity to Lynas’ Mt Weld REE Mine.
Key terms
Riversgold will pay Corcel $30,000 on execution of the agreement and has agreed to fund $500,000 within 12 months to earn 50% of the project.
If it wishes to withdraw before the end of the first year, it must pay $100,000 or the balance of the $100,000 in cash to Corcel.
Assuming that this does not happen, the company can fund a further $1 million within 12 months to earn an additional 20% interest, or both parties can contribute to expenditure in proportion to their respective interests of 50% each.
Lithium-focused so far
Riversgold acquired a suite of four lithium-prospective exploration tenement applications covering 164 square kilometres in the Pilbara region in 2022, where the key Tambourah Project has the potential to host a major lithium-caesium-tantalum system much like the nearby Pilgangoora and Wodgina deposits.
Further, the company has acquired a tenement package of 301.2 square kilometres prospective for lithium in the Southern Cross-Marvel Loch region of Western Australia, including a tenement immediately bordering the 189-million-tonnes Mt Holland Lithium Project.
Riversgold also offers exposure to gold and nickel through its large landholding at the Kurnalpi Project in the Yilgarn.