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Details
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Created on 20 October, 2015
October 20, 2015 - Vancouver, BC: Riverside Resources Inc. ('Riverside' or the 'Company') (TSX-V: RRI), is pleased to announce that it has entered into an Option Agreement (the 'Agreement') with Centerra Gold Inc. ('Centerra'), whereby Centerra can acquire a 70% interest in the Company's Tajitos Project (the 'Project'). In order to exercise the option, Centerra must incur $6,000,000 USD in aggregate exploration expenditures within approximately four (4) years of signing the Agreement (see table below). Riverside will act as the Project Manager and collect management fees until the earlier of December 31, 2017 or $2,000,000 in exploration expenditures have been completed, after which point Centerra may elect a different Project Manager if they so choose. The required exploration expenditures are outlined in the table below:
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Date
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Exploration Expenditures
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By April 30, 2016
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Expenditure of not less than $250,000
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By December 31, 2016
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Additional Expenditure of not less than $500,000
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By December 31, 2017
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Additional Expenditure of not less than $1,250,000
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By December 31, 2018
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Additional Expenditure of not less than $1,750,000
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By December 31, 2019
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Additional Expenditure of not less than $2,250,000
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All amounts in US dollars
Riverside's President and CEO, John-Mark Staude, stated: 'Riverside Resources believes in the potential for finding new large gold discoveries in Sonora like the Herradura Mine of Fresnillo, San Francisco Mine of Timmins Gold and Chanate Mine of Alamos Gold. Our Tajitos project has the geologic features and near surface gold indicators similar to those found at and around these nearby gold mining operations. We are delighted to have a strong mine production partner like Centerra Gold Inc. stepping into a new jurisdiction and working with Riverside on this high quality gold property. Riverside looks forward to rapid exploration progress including trenching, detailed channel sampling and moving through preparations ahead of drill testing in 2016. We continue to have a strong cash position, no debt and partners funding projects that Riverside controls thus progressing and de-risking the assets for our stakeholders.'
About the Tajitos Project:
The 151 km² Tajitos Gold Project is located in the heart of the Sonora-Mojave Megashear Gold Belt. The Project was acquired by Riverside from a private owner and is owned 100% with no underlying royalties. Since acquiring the property, Riverside has completed multiple surface and underground sampling and mapping programs and has staked additional ground (Tejo & Cortez claims) to expand and consolidate the land package.
There have been at least three operational campaigns over the past 100 years on the property of high grade gold extraction from veins within shear zones. Three historic RC drill holes were completed by Penmont Mining Company in 2008, reportedly intersecting gold mineralization including: 2.03 metres grading 15.3 g/t Au and a different intercept of 8.12 metres grading 1.8 g/t Au. Samples from this drilling are not available and no check assays have been completed so the results cannot be relied upon. Riverside results from rock chip geochemical sampling on the vein systems at Tajitos range from <0.005 to='' 34.74='' _g2f_t='' gold='' and='' from=''></0.005><0.1 to='' 383='' _g2f_t='' silver='' over='' widths='' ranging='' from='' 0.5='' 3.0='' metres.='' sampling='' outside='' the='' veins='' in='' silicified='' and='' sericite='' altered='' volcanic='' intrusive='' rocks='' have='' returned='' gold='' values=''></0.1><0.005 to='' 1.02='' _g2f_t.='' further='' structural='' and='' geologic='' interpretations='' have='' been='' completed='' by='' riverside='' as='' the='' company='' continues='' progress='' sonora='' megashear='' exploration='' toward='' drilling='' of='' highest='' quality='' bulk='' tonnage='' gold=''></0.005>
Additional Agreement Details:
The initial $250,000 in exploration expenditures is a firm commitment ('Mandatory Payment') and must be incurred by April 30, 2016. At such time as Centerra exercises the Option, the parties will form a Joint Venture to advance the Tajitos Gold Project with initial participating interests of Centerra and Riverside at 70% and 30% respectively. Should a party elect not to participate in a work program a standard straight-line dilution formula will apply. Dilution to a 10% joint venture interest will result in the diluted party's interest being converted to a 2.5% net smelter royalty (NSR), with the other party having the right to purchase 1% of the NSR for $2,000,000 within three (3) years of conversion.
Qualified Person and QA/QC:
The scientific and technical data contained in this news release pertaining to the Company's Tajitos Project was reviewed and prepared under the supervision of Riverside's VP Exploration, Greg Myers, PhD, PGeo, 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 acts as a 'qualified person' under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Samples were taken to Hermosillo, Mexico where ALS Laboratory Group's mineral division ALS Chemex crushed and pulverized each sample. The rejects remained with ALS Chemex while the pulps were transported to ALS Chemex's ISO 9001-2008 certified laboratory in North Vancouver, BC, Canada for analysis. A QA/QC program was implemented as part of the sampling procedures for the exploration program. Standard and blank samples were randomly inserted into the sample stream prior to being sent to the laboratory.
About Riverside Resources Inc.:
Riverside is a well-funded prospect generation team of focused, proactive gold discoverers. The Company currently has more than $3,000,000 in the treasury and approximately 37,000,000
shares outstanding. The Company's model of growth through partnerships and exploration uses the prospect generation business approach to own resources, while partners share in de-risking projects on route to 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.
'John-Mark Staude'
Dr. John-Mark Staude, President & CEO
For additional information contact:
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.