Riversgold has locked in a full funding and operational deal with MEGA Resources for its Northern Zone Gold Project near Kalgoorlie, while also advancing exploration in Canada and raising $2 million to fuel growth.
- Binding Right to Mine agreement with MEGA Resources funds Northern Zone project
- Drilling expands gold mineralisation footprint with promising assay results
- Farm-out deal with AIS Resources for Saint John copper-gold project in Canada
- Raised $2 million via placement to support exploration and working capital
- Ongoing exploration at Tambourah, Wodgina East iron ore, and Onslow South uranium projects
Full Funding Secured for Northern Zone Gold Project
Riversgold Ltd (ASX – RGL) has taken a significant step forward in developing its Northern Zone Gold Project, located just 25 kilometres east of the Kalgoorlie Super Pit in Western Australia. The company signed a binding Right to Mine and Co-Operation Agreement with MEGA Resources, a well-established mining services provider in the WA Goldfields. Under this deal, MEGA will fully fund all mining, haulage, geological, and engineering services, removing the need for upfront capital from Riversgold and its joint venture partner Oracle Power plc.
This arrangement sees profits from the operation shared equally between MEGA and the project owners, with 10% of monthly profits earmarked for reinvestment into further drilling and grade control. The partnership accelerates Riversgold’s path to production while mitigating financial risk.
Expanding Gold Mineralisation and Drilling Progress
Recent drilling campaigns at Northern Zone have revealed a substantial gold mineralised porphyry approximately 600 metres wide and 500 metres deep. Notably, shallow gold mineralisation continues to be intersected, expanding the known footprint and confirming the potential for a sizeable low-grade heap leach operation, drawing parallels with Saturn Metals’ nearby Apollo Hill project.
Highlights from the latest drilling include intercepts such as 9 metres at 1.33 grams per tonne gold and 8 metres at 5.81 grams per tonne gold, underscoring the project's promising grade and scale. A second drilling program commenced in mid-November 2025, with results pending, as Riversgold prepares for a maiden Mineral Resource Estimate.
Strategic Farm-Out in Canada and Diverse Exploration Portfolio
Beyond Australia, Riversgold has entered a farm-out agreement with Canadian-listed A.I.S. Resources Limited for its Saint John Copper/Gold/Silver/Antimony Project in New Brunswick. AIS can earn up to 75% by funding staged exploration and development activities, allowing Riversgold to retain a 25% free-carried interest through to a decision to mine. This deal provides exposure to a polymetallic project while focusing Riversgold’s resources on its Australian assets.
Meanwhile, exploration continues at the Tambourah Copper-Gold Project in Western Australia, where historical high-grade copper and gold occurrences have been validated. The Wodgina East Iron Ore Project near the expanding Wodgina Lithium Mine has identified promising channel iron deposits, and the Onslow South Uranium Project is positioned near significant uranium resources, highlighting Riversgold’s diversified commodity exposure.
Capital Raising Supports Growth and Exploration
To underpin these activities, Riversgold successfully raised $2 million through a placement to sophisticated investors in January 2026, with an additional $150,000 proposed for directors and management pending shareholder approval. The funds will support ongoing drilling, project development, and general working capital needs. Despite a cash balance of $514,000 at quarter-end and exploration expenditure of approximately $534,000, the company is actively managing its funding position with potential further capital raises and in-the-money options exercisable for up to $7.59 million.
Overall, Riversgold’s December quarter report reflects a company advancing multiple projects with strategic partnerships and a clear focus on unlocking value from its gold and base metal assets.
Bottom Line?
With MEGA’s backing and a diversified project pipeline, Riversgold is poised for a pivotal year ahead, though upcoming drilling results and shareholder approvals will be key to sustaining momentum.
Questions in the middle?
- How will the profit-sharing arrangement with MEGA impact Riversgold’s long-term cash flow and project economics?
- What are the timelines and expectations for the maiden Mineral Resource Estimate at Northern Zone?
- How might the farm-out deal with AIS Resources influence Riversgold’s strategic focus and capital allocation?