VANCOUVER, British Columbia, Feb. 19, 2019 (GLOBE NEWSWIRE) -- Riverside Resources Inc. ("Riverside" or the "Company") (TSX-V: RRI) (RVSDF) (R99.F), is pleased to announce that partner Sinaloa Resources Inc. has entered into a Definitive Agreement (the “Agreement”) signed on January 30, 2019 that begins with an Initial Option to acquire a 70% interest in the La Silla Project (the “Project”). Sinaloa Resources has issued Riverside 1,000,000 common shares and now paid $60,000 total in cash. Riverside and Sinaloa Resources expect the commencement of a first phase $300,000 exploration program in the coming months, as per the Agreement (see Table 1 below).
Under the terms of the Agreement, the Initial Option to earn 70% is predicated upon the issuance by Sinaloa Resources of shares at a value of $1,000,000, $60,000 in cash payments and exploration work totaling $2,000,000 over 36 months (see Table 1 below).
Riverside’s President and CEO, John-Mark Staude, stated: “We are pleased to move forward with Sinaloa Resources in the La Silla precious metal district in Sinaloa, Mexico. The last exploration and drilling program at La Silla intersected high grades and we look forward to operating and collaborating with our partner to build on historical success in this district.”
Riverside has completed extensive generative prospecting work at the Project including rock-chip and grab samples up to 19.9 g/t Au and 200 g/t Ag. Riverside’s previous work programs focused on extending known areas of mineralization, such as the Ciruelo and El Roble veins (see press release June 19, 2018). Further property-wide exploration also successfully identified new showings, structures and historical abandoned workings as part of the Company’s generative work aimed at developing additional exploration target areas to increase the pipeline of new discovery targets at La Silla.
Sinaloa Resources is currently a privately held company and intends to pursue a listing transaction on either the TSX Venture Exchange (“TSXV”) or the Canadian Securities Exchange (“CSE”) within 12 months of execution of the Definitive Agreement. The Agreement also includes several provisions that protect Riverside in the event of early termination or a late listing transaction.
Table 1: Initial Option - Sinaloa Resources to acquire 70% interest in La Silla
|Due Dates||Cash |
|$ Value of |
Shares to be
|Upon Execution of the LOI||$25,000||Nil|
|Upon Execution of the Definitive Agreement||$35,000||$100,000|
|12 Months from the Date of the Definitive Agreement||$100,000||$300,000|
|24 Months from the Date of the Definitive Agreement||$100,000||$700,000|
|36 Months from the Date of the Definitive Agreement||$700,000||$1,000,000|
|All amounts in Canadian dollars|
Additional Agreement Details:
To earn an additional 30% (the “Additional Option”), Sinaloa Resources must incur a further $1,000,000 in exploration work and issue Riverside additional Sinaloa Resources shares at a value of $500,000. Riverside will retain a 3% NSR on the Project should Sinaloa Resources complete 100% earn-in, or Riverside’s interest dilutes to less than 10%.
Qualified Person & QA/QC:
The scientific and technical data contained in this news release pertaining to the La Silla Project was reviewed and approved by Freeman Smith, P.Geo, a non-independent qualified person to Riverside Resources, who is responsible for ensuring that the geologic information provided in this news release is accurate and who acts as a “qualified person” under National Instrument 43-101 Standards of Disclosure for Mineral Projects.
About Riverside Resources Inc.:
Riverside is an exploration company driven by value generation and discovery. The company has fewer than 45M shares issued and a strong portfolio of gold-silver and copper assets in North America. Riverside has extensive experience and knowledge operating in Mexico and leverages its large database to generate a portfolio of prospective mineral properties. In addition to Riverside’s own exploration spending, the Company also strives to diversify risk by securing joint-venture and spin-out partnerships to advance multiple assets simultaneously and create more chances for discovery. Riverside has additional properties available for option, with more information available on the Company’s website at www.rivres.com.
ON BEHALF OF RIVERSIDE RESOURCES INC.
Dr. John-Mark Staude, President & CEO
For additional information contact:
|John-Mark Staude |
Riverside Resources Inc.
Phone: (778) 327-6671
Fax: (778) 327-6675
|Raffi Elmajian |
Riverside Resources Inc.
Phone: (778) 327-6671 ext. 312
TF: (877) RIV-RES1 ext. 312
Certain statements in this press release may be considered forward-looking information. These statements can be identified by the use of forward looking terminology (e.g., "expect”,” estimates", "intends", "anticipates", "believes", "plans"). Such information involves known and unknown risks -- including the availability of funds, the results of financing and exploration activities, the interpretation of exploration results and other geological data, or unanticipated costs and expenses and other risks identified by Riverside in its public securities filings that may cause actual events to differ materially from current expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.