Riverside Resources Signs US$1,800,000 Three Year Strategic Alliance With
Antofagasta for Copper Exploration in Eastern Sonora, Mexico
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/22/13 -- Riverside
Resources Inc. ("Riverside" or the "Company") (TSX
VENTURE:RRI)(PINKSHEETS:RVSDF)(FRANKFURT:R99) is pleased to announce
the signing of a three year, US$1.8M strategic exploration alliance
(the "Alliance") with a wholly-owned subsidiary of Antofagasta Plc
("Antofagasta") for generative exploration in the major copper belt
of northwestern Mexico in the eastern part of the state of Sonora.
The Alliance will focus on finding and developing new large copper
deposits using Riverside's extensive technical knowledge of copper
systems and strong generative exploration team strategically based in
Hermosillo, Sonora, Mexico.
Antofagasta will fund US$600,000 on an annual basis for three (3)
years of generative grass-roots exploration within a defined
exploration area covering eastern Sonora and parts of western
Chihuahua and northern Sinaloa. The exploration area being explored
by Antofagasta and Riverside is a continuation of the same belt that
hosts more than 25 known deposits and mines north of the border in
Arizona, and is also host to one of the world's top 10 (and lowest
cash cost) copper producers in Grupo Mexico.(1) Properties that are
identified and deemed to be of interest will become Designated
Properties whereby Antofagasta will have the opportunity to earn a
65% interest by completing a four year, US$5,000,000 work program.
Once earn-in on a Designated Project (DP) is completed, a one-time
payment of US$3,000,000 will be made to Riverside and the property
will then be advanced under a joint venture agreement (65%-35%).
The Alliance will target properties containing primarily Cu with
possible minor amounts of Au, Ag, Mo, Pb, Zn, Ni and PGM. All
properties identified by Riverside under the Alliance that are not
jointly pursued will then be available for Riverside to pursue on its
own should Antofagasta decide it does not fit their strategic
interests. All decisions relating to the Alliance will be made
jointly by the Technical Committee with Antofagasta holding a
tie-breaking vote while sole funding. Unless otherwise specified,
Riverside will be the designated operator for all exploration
activities of the Alliance. All property acquisitions will be in the
name of Riverside's wholly owned subsidiary and transferred to a
jointly held company once selected as a DP.
"Riverside and Antofagasta have built a strong relationship during
our work together in British Columbia, and we now look forward to
applying a similar partnership framework to our joint exploration
efforts within the prolific Laramide copper belt of northwestern
Mexico, which is the continuation of the many large copper mines in
Arizona and extends southward into Sonora where this Alliance will
-John-Mark Staude, President & CEO of Riverside Resources Inc.
Antofagasta and Riverside are already working in a generative grass
roots exploration alliance in British Columbia where drilling is
again set to commence in the second year of the BC Alliance. The
Mexico Alliance with Antofagasta will draw from the vast databases,
technical experience and Riverside's exploration team and
infrastructure already in place to rapidly deliver potential
Designated Properties to Antofagasta for their evaluation for
additional funding and advancement. Further details on the
Riverside-Antofagasta Mexico Alliance will be available on the
Company's website shortly.
Key Designated Project Alliance Terms:
Projects selected as Designated Project's will have deemed ownership
of 51% and 49% for Antofagasta and Riverside respectively.
Antofagasta would then have to spend a minimum of US$5,000,000 within
four (4) years from the date the DP is chosen, with minimum annual
expenditures as follows:
(i) US$500,000 on or before the first anniversary of the Effective Date;
(ii) an additional US$700,000 on or before the second anniversary of the
Effective Date (for a cumulative amount of US$1,200,000);
(iii) an additional $1,500,000 on or before the third anniversary of the
Effective Date (for a cumulative amount of US$2,700,000); and
(iv) an additional US$2,300,000 on or before the fourth anniversary of the
Effective Date (for a cumulative amount of US$5,000,000); and
Once Antofagasta has completed the earn-in requirements, Riverside
would be entitled to receive a Success Fee of US$3,000,000 from
Antofagasta within 90 days. The Designated Project would then be
advanced with Antofagasta and Riverside holding 65% and 35% interest
respectively. If Riverside's interest in a Designated Project is ever
reduced to 10% or less this interest will be converted to a 2% NSR.
About Riverside Resources Inc.:
Riverside is a well-funded prospect generation team of focused,
proactive gold discoverers with the breadth of knowledge to dig much
deeper. The Company currently has approximately $6,000,000 in the
treasury and 37,000,000 shares outstanding. The Company's model of
growth through partnerships and exploration looks to use 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.
Antofagasta plc is a Chile-based copper mining group with interests
in energy, transport and water distribution. It is listed on the
London Stock Exchange and is a constituent of the FTSE 100 index.
Antofagasta's mining activities are primarily concentrated in Chile
where it owns and operates four copper mines, which in 2012 produced
709,600 tonnes of copper, 12,200 tonnes of molybdenum and 299,900
ounces of gold. Antofagasta also has mining exploration, evaluation
and/or feasibility programs in North America, Latin America, Europe,
Asia, Australia, and Africa.
ON BEHALF OF RIVERSIDE RESOURCES INC.
Dr. John-Mark Staude, President & CEO
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.
(1) (Basov, 2013)
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.
Riverside Resources Inc.
President & CEO
(778) 327-6675 (FAX)
Riverside Resources Inc.
Manager, Corporate Development
(778) 327-6675 (FAX)
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