Riversgold sued by former CEO over six-figure debt

Image: Riversgold

Riversgold’s former managing director and chief executive Allan Kelly has decided to take the company to court for debt allegedly owed to him.

Kelly ceased to be a director at the Australia- and Alaska-focused Riversgold on March 26 2019, after which he submitted a claim for $121,000 to court.

Riversgold has announced its decision to revoke the demand, calling it “a genuine dispute” as to whether the debt claimed by Kelly was due and payable.

A statutory demand for payment of debt under Section 459G of the Corporations Act 2001 requires a company to pay or secure the amount owed to its creditor within 21 days.

Recently-departed Kelly was a founding director when Riversgold was listed on the ASX in October 2017. He was the second founding director to resign from the company during the March 2019 quarter.

Riversgold holds a portfolio of mineral exploration tenements in the Eastern Goldfields of Western Australia and has a farm-in agreement with ASX-listed Alloy Resources over two exploration licences in the same area.

It has 100 per cent interest in three projects at the western end of the Tintina gold province in southwest Alaska.

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