Riverside Signs Definitive Option Agreement and Receives Cash and Shares From Partner
Riverside Signs Definitive Option Agreement and Receives Cash and Shares
From Partner
VANCOUVER, British Columbia, Feb. 19, 2019 -- Riverside Resources Inc. ("Riverside" or the "Company") (TSX-V: RRI )
(OTCQB: RVSDF) (FSE: R99) , is pleased to announce that partner Sinaloa Resources Inc. has entered into a Definitive
Agreement (the “Agreement”) signed on January 30, 2019 that begins with an Initial Option to acquire a 70% interest in the La
Silla Project (the “Project”). Sinaloa Resources has issued Riverside 1,000,000 common shares and now paid $60,000 total in
cash. Riverside and Sinaloa Resources expect the commencement of a first phase $300,000 exploration program in the
coming months, as per the Agreement (see Table 1 below).
Under the terms of the Agreement, the Initial Option to earn 70% is predicated upon the issuance by Sinaloa Resources of
shares at a value of $1,000,000, $60,000 in cash payments and exploration work totaling $2,000,000 over 36 months (see
Table 1 below).
Riverside’s President and CEO, John-Mark Staude, stated: “We are pleased to move forward with Sinaloa Resources in
the La Silla precious metal district in Sinaloa, Mexico. The last exploration and drilling program at La Silla intersected high
grades and we look forward to operating and collaborating with our partner to build on historical success in this district.”
Riverside has completed extensive generative prospecting work at the Project including rock-chip and grab samples up to 19.9
g/t Au and 200 g/t Ag. Riverside’s previous work programs focused on extending known areas of mineralization, such as the
Ciruelo and El Roble veins (see press release June 19, 2018). Further property-wide exploration also successfully identified
new showings, structures and historical abandoned workings as part of the Company’s generative work aimed at developing
additional exploration target areas to increase the pipeline of new discovery targets at La Silla.
Sinaloa Resources is currently a privately held company and intends to pursue a listing transaction on either the TSX Venture
Exchange (“TSXV”) or the Canadian Securities Exchange (“CSE”) within 12 months of execution of the Definitive Agreement.
The Agreement also includes several provisions that protect Riverside in the event of early termination or a late listing
transaction.
Table 1: Initial Option - Sinaloa Resources to acquire 70% interest in La Silla
Due Dates Cash
Payments
$ Value of
Shares to be
Issued
Exploration
Expenditures
Upon Execution of the LOI $25,000 Nil
Upon Execution of the Definitive Agreement $35,000 $100,000
12 Months from the Date of the Definitive Agreement $100,000 $300,000
24 Months from the Date of the Definitive Agreement $100,000 $700,000
36 Months from the Date of the Definitive Agreement $700,000 $1,000,000
Total: $60,000 $1.000,000 $2,000,000
All amounts in Canadian dollars
Additional Agreement Details:
To earn an additional 30% (the “Additional Option”), Sinaloa Resources must incur a further $1,000,000 in exploration work and
issue Riverside additional Sinaloa Resources shares at a value of $500,000. Riverside will retain a 3% NSR on the Project
should Sinaloa Resources complete 100% earn-in, or Riverside’s interest dilutes to less than 10%.
Qualified Person & QA/QC:
The scientific and technical data contained in this news release pertaining to the La Silla Project 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 in 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 an exploration company driven by value generation and discovery. The company has fewer than 45M shares
issued and a strong portfolio of gold-silver and copper assets in North America. Riverside has extensive experience and
knowledge operating in Mexico 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 ext. 312
TF: (877) RIV-RES1 ext. 312
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.