How Riversgold’s New Deal with MEGA Could Unlock Millions in Gold Near Kalgoorlie
Riversgold has partnered with MEGA Resources to fully fund and operate mining at its Northern Zone Gold Project near Kalgoorlie, sharing profits equally and aiming to commence mining in early 2026.
- Binding Right to Mine and Co-Operation Agreement signed with MEGA Resources
- MEGA to fully fund mining, haulage, geological, and engineering services
- Profit split 50/50 between MEGA and Project Owners Riversgold (80%) and Oracle Power (20%)
- Mining targeted to start in Q1 2026 pending approvals and ore purchase agreement
- $1.8 million placement secured to support ongoing exploration and operations
Strategic Partnership Advances Northern Zone Gold Project
Riversgold Limited (ASX, RGL) has taken a significant step forward in developing its Northern Zone Gold Project near Kalgoorlie by signing a binding Right to Mine and Co-Operation Agreement with MEGA Resources. This agreement entrusts MEGA, a well-established Western Australian mining services provider, with full funding and operational responsibilities for mining, haulage, geological, and engineering services at the project.
Located just 25 kilometres from the iconic Kalgoorlie Super Pit, the Northern Zone project is owned 80% by Riversgold and 20% by Oracle Power Plc. Under the new arrangement, MEGA will cover 100% of the upfront capital and operational costs, removing the need for Riversgold or Oracle to contribute initial funding. In return, profits generated from mining operations will be split evenly between MEGA and the Project Owners, reflecting a balanced partnership approach.
Project Outlook and Exploration Potential
MEGA aims to commence mining activities in the first quarter of 2026, contingent on securing final tenement permissions, mining approvals, and a binding ore purchase agreement with a third-party processing mill. The project’s geological profile is promising, featuring a gold mineralised porphyry approximately 600 metres wide and 500 metres deep, identified through extensive diamond drilling.
Riversgold continues to advance exploration with plans for additional drilling to test extensions of known gold mineralisation. The company’s exploration target remains robust, estimated between 200 to 250 million tonnes at a grade of 0.4 to 0.6 grams per tonne gold, translating to a potential 2.5 to 4.8 million ounces of gold. This positions Northern Zone as a potentially significant gold resource in the region.
Financial Backing and Incentives
To support ongoing exploration and operational activities, Riversgold has secured firm commitments for a $1.8 million placement at $0.0045 per share, demonstrating strong investor confidence. The funds will be allocated across exploration programs at Northern Zone and the Tambourah Copper-Gold Project, business development, and general working capital.
Additionally, the company plans to propose incentive options for board members and management at its upcoming annual general meeting, aligning leadership interests with shareholder value creation as the project progresses.
Partnerships and Industry Context
MEGA Resources brings to the table not only funding but also mining expertise and a strategic partnership with BGR Mining & Infra Limited, one of India’s largest mining contractors. This collaboration enhances the operational capabilities and risk management for the Northern Zone project.
Riversgold draws parallels between Northern Zone and Saturn Metals’ Apollo Hill project, which has a similar geological setting and a resource exceeding 2 million ounces of gold. This comparison underscores the potential scale and economic viability of Northern Zone, pending further exploration and development.
Bottom Line?
With MEGA’s full funding and operational backing, Riversgold’s Northern Zone project is poised to transition from exploration to production, but key approvals and agreements remain critical next steps.
Questions in the middle?
- Will MEGA secure all necessary mining approvals and the ore purchase agreement in time for a Q1 2026 start?
- How will ongoing drilling results impact the size and grade of the Northern Zone’s exploration target?
- What are the financial implications of the profit-sharing model for Riversgold’s cash flow and shareholder returns?