Riverside Resources Signs Letter of Intent with Questcorp Mining to Option the Union Project for $5,500,000 of Total Expenditures
Riverside Resources Signs Letter of Intent
with Questcorp Mining to Option the Union
Project for $5,500,000 of Total Expenditures
Vancouver, British Columbia--(Newsfile Corp. - September 6, 2024) -
Riverside Resources
Inc.
(TSXV: RRI) (OTCQB: RVSDF) (FSE: 5YY) ("Riverside" or the "Company"),
is pleased to
announce that on September 4, 2024, it entered into a Letter of Intent with Questcorp Mining Inc. (CSE:
QQQ) ("Questcorp"), whereby the Company
will grant an option (the "Transaction") to Questcorp for the
acquisition of a one-hundred percent (100%) interest in the La Union project (the "Project") located in
Sonora, Mexico. Riverside will receive $100,000 and 19.9% in the ownership of Questcorp upon
Questcorp investing $5,500,000 into the Project over a period of 4 years from the date of completing the
Definitive Agreement.
Union is a large, carbonate-hosted gold district with high grade gold-zinc and a former mining operation
of the Penoles Mining Company of Mexico. The Project has drive up access, private ranch surface
ownership, and geologic features similar to the major carbonate replacement deposits located in
Arizona and further east in Mexico.
Union has past drilling and mining at multiple production centers
which have been consolidated over the past 5 years by Riverside. Riverside now controls over 22 sq km
with favorable limestone host rocks, large alteration footprint and many small mine workings which
provide more than 8 drill ready target areas with the central former Union Mine and the Famosa Mine as
two key immediate target areas.
"We are excited to partner this top-quality Project, consolidated and worked up by Riverside.
To now
work with Questcorp to go forward with the exploration program and continued development is an
excellent collaboration and fits both companies' business models." said John Mark Staude, President
and CEO of Riverside. "Riverside has extensive operational capacity in Mexico and can rapidly move
ahead with Questcorp to unlock the value of La Union Project. Riverside being a significant shareholder
of Questcorp with an initial 9.9% on signing the Definitive Agreement aligns our interests to see success
for Union and the companies."
Transaction Details:
In accordance with the terms of the Transaction, Questcorp can acquire a one-hundred percent (100%)
interest in the Project in consideration for completion of a series of cash payments totaling $100,000, the
issuance of 19.9% of the outstanding common shares of the Questcorp, and the incurrence of no less
than $5,500,000 of exploration expenditures on the Project by Questcorp, as follows:
Deadline
Cash Payment
Share Issuance
Exploration Expenditures
Entering into Letter of Intent
(Paid) $12,500
Nil
N/A
Closing of the Transaction (Signing of the Definitive
Agreement and conditions)
$12,500
*9.9%
N/A
First Anniversary of Closing
Nil
*14.9%
$1,000,000
Second Anniversary of Closing
$25,000
*19.9%
$1,250,000
Third Anniversary of Closing
$25,000
*19.9%
$1,500,000
Fourth Anniversary of Closing
$25,000
*19.9%
$1,750,000
Total
$100,000
*19.9%
$5,500,000
*
Expressed as a cumulative total percentage of the undiluted issued and outstanding common shares of the Company
as of the applicable payment date, and assuming Riverside has not previously disposed of any common shares
**All dollar amounts in this news release are in Canadian dollars
Riverside will remain the program operator for the Project during the term of the option using its local
team based in Hermosillo, Sonora and with support from the Vancouver, Canada exploration office.
Following exercise of the option, Riverside will retain a two-and-one-half percent (2.5%) net smelter
returns royalty on commercial production from the Project.
Exploration work by Riverside over the past 12 months has improved the geologic and structural
contextual understanding of the past mines and overall potential areas of mineralization including
possibilities for a deeper Laramide age porphyry Cu-Au target as found to the north at Ajo and eastward
along the abundant Cu porphyry belt of Sonora- Arizona.
Surface sampling recently completed by
Riverside has continued to find gold and the tailings from the past mine operators, located in a number
of locations on the property, have shown extensive gold zones in oxide ores.
Completion of the Transaction remains subject to a number of conditions, including the finalization of
definitive documentation, completion of the Concurrent Financing by Questcorp for gross proceeds of no
less than $1,500,000, receipt of any required regulatory, shareholder and third-party consents, approval
of the Canadian Securities Exchange, and the satisfaction of other customary closing conditions.
Riverside has been paid the initial $12,500 and will be paid the second $12,500 upon signing the
Definitive Agreement.
Readers are cautioned that the Letter of Intent does not bind Questcorp to complete the Transaction.
Should the Definitive Agreement not be done then the Letter of Intent will automatically terminate after
forty-five days.
The Transaction cannot close until the required approvals are obtained and the foregoing
conditions satisfied.
There can be no assurance that the Transaction will be completed as proposed or
at all.
Qualified Person:
This news release 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
within 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 a well-funded exploration company driven by value generation and discovery. The Company
has over $5 million in cash, no debt and less than 75 million shares outstanding with a strong portfolio of
gold-silver and copper assets and royalties 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 properties available for option,
with 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
Eric Negraeff
Investor Relations
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.
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https://www.newsfilecorp.com/release/222177