Riverside Resources Signs an Agreement to Option Chapalota Gold Property to Guerrero Exploration Inc.
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/07/11 -- Riverside Resources Inc. (TSX VENTURE: RRI)(PINK SHEETS: RVSDF)(FRANKFURT: R99) ('Riverside' or the 'Company') is pleased to announce that Riverside and Guerrero Exploration Inc. (TSX VENTURE: GEX) have entered into a binding letter agreement to jointly advance Riverside's 100% owned Chapalota Property (the 'Property'), located in Sinaloa, Mexico. Guerrero Exploration Inc. ('Guerrero') can acquire a sixty percent (60%) interest and exercise the Initial Option by issuing Riverside an aggregate 1,250,000 Guerrero shares, making total cash payments of $200,000 to Riverside, and incurring an aggregate $2,250,000 in exploration expenditures on the Chapalota Property within 36 months of the agreement. Included in the exploration expenditure requirements is a minimum of 1,250 metres of drilling each year, with Riverside acting as operator until the Initial Option is exercised.
'This agreement builds on the strong existing relationship between Riverside and Guerrero, as the companies are already jointly exploring the Cerro Azul Copper-Gold Project in Guerrero, Mexico. Riverside continues to build the strength of its joint-venture portfolio now with seven assets being advanced with anticipated drilling by partners. Riverside continues to leverage its unique country-wide knowledge to acquire and outline drill targets in Mexico. In the coming months the company looks toward potential drill discoveries and income from the numerous share and cash payments from option agreements now being progressed,' stated John-Mark Staude, President and CEO of Riverside Resources Inc.
Property Details:
The 91 km2 Chapalota Property is located on the western margin of the Sierra Madre Occidental Region approximately 50 km northeast of the city of Mazatlan in south-central Sinaloa, Mexico. The Chapalota Property is located to the north of Silvermex's Rosario Mine and south of US Gold's Majistral Mine in an abundantly rich mining region of Mexico.
Riverside previously completed rock chip channel samples that returned values ranging from less than 0.5ppb to 32 g/t gold during the most recent field exploration program. The 2010 exploration program discovered distinct high-grade gold zones that were identified using rock chip channel samples, guided in part by previous soil and stream sediment sampling results Riverside had completed during exploration prospecting and reconnaissance. The anomalous gold zones show potential to become drill targets upon further investigation and the new exploration program at Chapalota will immediately follow up with trenching, IP, and magnetic work.
For more details on the Chapalota Property visit the Riverside Resources Inc. website and view the Chapalota Property profile: http://www.rivres.com/projects/additional-mexico-projects/chapalota.html
Additional Agreement Terms:
The First year Firm Commitments on the part of Guerrero will include payment of 450,000 shares, $50,000 (6 & 12 month payments), and $500,000 in exploration expenditures. Any deficiency in the Firm Commitment shall be remedied by way of cash payment. The required investment to complete the Initial Option will come to an aggregate 1,250,000 Guerrero shares, total cash payments of $200,000 to Riverside, and the incurrence of $2,250,000 in exploration expenditures on the Chapalota Property within 36 months of the agreement.
Upon the exercise of the Initial Option, Riverside will grant Guerrero an irrevocable option to acquire an additional 10% interest in the Chapalota Property (the 'Additional Option'). Guerrero can exercise the Additional Option by incurring an additional $1,500,000 in exploration expenditures on the Chapalota Property and paying Riverside $500,000 on or before the second anniversary date of completing the first option. Upon the exercise of the Initial Option, provided that Guerrero surrenders its right to the Additional Option, Riverside and Guerrero shall be deemed to have formed a joint venture (the 'Joint Venture') with both company's holding 40% and 60% interest respectively. Complete agreement terms will be filed on SEDAR and available at www.sedar.com.
The scientific and technical data contained in this news release has been prepared under the supervision of Mark J Pryor, Pr.Sci.Nat., an 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.
About Riverside Resources:
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 $9,000,000 in the treasury and fewer than 32,100,000 shares issued. 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. Additional property information on the Company's projects can be found on the Riverside Resources Inc. website at www.rivres.com.
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.
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.
Contacts:
Riverside Resources Inc.
Joness Lang
Manager, Corporate Communications
(778) 327-6671
(778) 327-6675 (FAX)
info@rivres.com
www.rivres.com
Riverside Resources Inc.
Kaley Reid
Corporate Communications
(778) 327-6671
(778) 327-6675 (FAX)
info@rivres.com
www.rivres.com