Riverside Resources Options Cecilia Gold- Silver Project to Carlyle Commodities Corp. with Plans for Immediate Progression on Multiple Targets
Riverside Resources Options Cecilia Gold-
Silver Project to Carlyle Commodities Corp.
with Plans for Immediate Progression on
Multiple Targets
Vancouver, British Columbia--(Newsfile Corp. - July 15, 2020) -
Riverside Resources Inc.
(TSXV:
RRI) (OTCQB: RVSDF) (FSE: R99)
("Riverside" or the "Company"),
is pleased to announce that it
has entered into a Definitive Option Agreement (the "Agreement") with Carlyle Commodities Corp
("Carlyle"), for Riverside's 100% owned Cecilia Gold-Silver Project (the "Project") in Sonora, Mexico.
The Agreement would grant Carlyle 100% undivided right, title, and ownership to the Cecilia Project for
an aggressive work program, cash payments, shares over-time and a 2.5% NSR with Riverside
managing as operator. Riverside developed several targets after consolidating claims and expanding
the Project further through the Mexican lottery to grow to a consolidated ~80km² tenure package.
Highlights of the Agreement include:
Cash payments of C$200,000 over 3-years to Riverside;
Share payments of 4,500,000 shares to Riverside;
C$2,500,000 of exploration and drilling expenditures made by Carlyle at the Project;
2.5% NSR to Riverside
Please see the Transaction Details section below for more information on the Agreement. The planned
work program will be developed in the coming weeks with Carlyle Commodities Corp and can build
upon previous sampling, mapping, and structural work that the Company completed. The soil lines
combined with the 3D modeling of past drill holes and projection of the surface mapped geology to
depth begins to develop a range of precious metals targets that can be tested. A value add of a drone
aeromagnetic survey is a critical next step to get a good picture of the ~80 km
2
property tenure which will
aim to define the deeper feeder structures that could be controlling near surface mineralization.
Riverside's President and CEO, John-Mark Staude, stated:
"
We are excited to be working together
with Carlyle to progress the various exploration targets at the Cecilia Project and particularly our
shared keenness for discovery of high-grade mineralization on the district scale property package that
Riverside consolidated and worked up."
Riverside will act as the project operator during at least the first twelve months of the Agreement,
following the closing date with the option to extend at Carlyle's request. As operator, Riverside will be
able to provide continuity and skills operating during these COVID-19 times in regions of Sonora where
the Company is already running programs with other major mining company partners including BHP and
Hochschild Mining Corp.
Figure 1: Zoning Map of the Cecilia Project Showing a Range of Targets
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/6101/59803_77df5248543b9a97_002full.jpg
The Cecilia Project:
In 2017 Riverside consolidated and acquired the Cecilia Gold-Silver Project located in NE Sonora,
Mexico near the US/Mexico border. The Cecilia Project is a district scale gold and silver low sulfidation
epithermal system centered on multiple mineralized rhyolitic flow-dome complexes. One of the workings
at the Cerro Magallanes dome returned high grades up to 133.7 g/t Au and 335 g/t Ag (see Press
release dated June 6, 2017). In addition to the rhyolite domes epithermal type mineralization the
underlying sedimentary Cabullona group and Paleozoic limestone provide an additional environment for
replacement style mineralization at depth. Riverside's current analogues for Cecilia are SSR Mining's
Pitarrilla deposit and Fresnillo's San Julian deposit, which contain 526 million oz Ag (Measured +
Indicated
[1]
) and over 230 million oz Ag respectively.
Since the acquisition of the Project, Riverside has completed a number of sampling programs with
impressive results, it has increased the size of the Project to >7,700 hectares, produced new maps and
has identified new mineralized zones and targets at Cecilia.
Transaction Details:
Table 1: Option Payment Schedule
Payment Date
Cash Payment
($C)
Shares
Special Warrants
as Shares
Expenditures
Upon execution of
the LOI
$10,000
(Paid)
-
-
-
Upon Closing
$40,000
1,500,000
3,000,000
12 months from
Closing
$50,000
-
-
$750,000
24 months from
Closing
$50,000
-
-
$500,000
36 months from
Closing
$50,000
-
$1,250,000
TOTAL:
$200,000
1,500,000
3,000,000
$2,500,000
Payment Date
Cash Payment
($C)
Shares
Special Warrants
as Shares
Expenditures
Table 2: Special Warrants Vesting Schedule as Shares of Carlyle
Vesting Date
No. of Special Warrants Vested/Converted
12 months from Closing
500,000
18 months from Closing
500,000
24 months from Closing
500,000
30 months from Closing
500,000
36 months from Closing
1,000,000
Total:
3,000,000
Qualified Person and QA/QC:
The scientific and technical data contained in this news release pertaining to the Cecilia Project was
reviewed and/or prepared under the supervision of Freeman Smith, P.Geo., a non-independent qualified
person to Riverside Resources Inc. 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.
________________
[1]
https://www.ssrmining.com/_resources/Pitarrilla_Technical_Report_Dec_14_2012.pdf
About Riverside Resources Inc.:
Riverside is a well-funded exploration company driven by value generation and discovery. The Company
has no debt and less than 65M shares outstanding with a strong portfolio of gold-silver and copper
assets in North America. Riverside has extensive experience and knowledge operating in Mexico and
Canada 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.
"John-Mark Staude"
Dr. John-Mark Staude, President & CEO
For additional information contact:
John-Mark Staude
President, CEO
Riverside Resources Inc.
Phone:
(778) 327-6671
Fax:
(778) 327-6675
Web:
www.rivres.com
Raffi Elmajian
Corporate Communications
Riverside Resources Inc.
Phone: (778) 327-6671
TF: (877) RIV-RES1
Web:
www.rivres.com
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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/59803