Stocks of the Hour: Riversgold, Mount Ridley Mines, Lake Resources
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Riversgold Limited (ASX:RGL) is pleased to announce it has reached an agreement to acquire a Prospecting Licence, consolidating its landholding at the Tambourah Lithium Project in Western Australia’s Pilbara region. The Licence covers an area of prospective greenstones in the southern part of the main Tambourah tenement. Riversgold CEO, Julian Ford said “We are pleased to continue the consolidation in and around Tambourah where it makes economic sense and is value-adding for the Company. While the new prospecting licence was previously mined for gold, it sits within what is considered the ‘Goldilocks zone’ for large lithium-caesium-tantalum (LCT) systems. Shares are trading 14.3 per cent higher at 4 cents.
Mount Ridley Mines Limited (ASX:MRD) provided a drilling update today following the receipt of further assay results from its 2022 drilling programme, which specifically targeted clay-hosted rare earth element (REE) mineralisation. The Mount Ridley Project is located near Esperance, Western Australia. Mount Ridley’s Chairman Mr Peter Christie commented “With over 90% of assays now received, the regional drilling programme has been an outstanding success in demonstrating widespread clay hosted REE mineralisation throughout the entire Project area. We are very encouraged by these results with new targets discovered, higher grade and thicker intersections, and significant mineralisation occurring at shallower depths. These results have given the Company confidence to commit to a substantial drilling and metallurgical programme at the REE Project”. Shares are trading 20 per cent higher at 1 cent.
Clean lithium developer Lake Resources (ASX:LKE) announced today that it has entered into a Conditional Framework Agreement (CFA) with WMC ENERGY for the offtake of up to 25,000 metric tons per annum of battery grade lithium from the Kachi Project, and a 10 percent investment by WMC in Lake at $1.20 per share which represents a 17% premium to Lakes closing price yesterday. The initial offtake term is for ten years with an option to extend by an additional five years. The offtake will be priced on an agreed market price formula based upon the average quoted price in the quotational applying a discount. The CFA is subject to a standard set of conditions being achieved by Lake Resources that include the finalisation of the Definitive Feasibility Study (DFS), the performance of Lilac’s demonstration plant and further due diligence by WMC. The CFA becomes unconditional upon satisfaction of these conditions. Stu Crow, Lake’s Executive Chairman states “The CFA delivers a long-term strategic alignment with WMC and its supply chain into its European and North American customers”. Shares are trading almost 7 per cent higher at $1.07.
Copyright 2022 – Finance News Network
Source: Finance News Network
