Riversgold Ltd (ASX:RGL) made progress in its capital raising efforts during the December quarter with the aim to fund exploration of assets in the Eastern Goldfields of Western Australia, and the Tintina gold province in Alaska, USA.
While no field activity during the quarter, the company continued to review previous drilling campaigns at its Kurnalpi project in Western Australia where several near-term targets were identified for further work.
In August 2019, Riversgold announced plans to undertake a capital raising of approximately $1.9 million via a $400,000 placement and $1.5 million non-renounceable rights issue.
Funds will be directed towards managing and realising the full potential of the company’s existing projects in Western Australia and Alaska as well as explore for complementary acquisition opportunities.
The company closed the non-renounceable rights issue on November 15, 2019, receiving $665,188 for the issue of 66,518,841 ordinary shares leaving a shortfall of 84,716,034 shares.
Following a successful restructure and capitalisation, the company’s activities are now focused on information memorandums for non-core assets and finalisation of the current non-renounceable rights shortfall, which is expected to be fully subscribed soon.
Convertible note repayment
Over the quarter the company repaid the outstanding convertible note issued on May 1, 2019, for $100,000, plus interest accrued of $3,246.58, to Greenwich Group Pty Ltd.
Chairman Rod Webster and company secretary Kevin Hart both resigned with Amanda Burgess appointed new company secretary on December 20, 2019.