Riverside Resources and Fortuna Silver Sign Exploration Earn-In Option Agreement for the Cecilia Project Sonora, Mexico
- None.
- None.
Vancouver, British Columbia--(Newsfile Corp. - March 13, 2024) - Riverside Resources Inc. (TSXV: RRI) (OTCQB: RVSDF) (FSE: 5YY) ("Riverside" or the "Company"), is pleased to announce it has signed an option agreement on March 8, 2024 with Fortuna Silver's subsidiary Compania Minera Cuzcatlan (CMC) on Riverside's Cecilia Gold Silver Project in Sonora, Mexico where through a series of payments and work commitments, Fortuna may earn a majority interest. Riverside will remain the program operator using its local team based in Hermosillo, Sonora and adding strength to its international geoscience staff. The Cecilia Project is a titled and
Highlights of the Agreement are summarized below:
- Fortuna Silver Option of Riverside's Cecilia project with commitment of work, including an initial planned minimum 1000 meters drilling campaign.
- Work expenditures of 500k/yr for the first 4 years and 1.75M in final year.
- An initial payment of
$50,000 t o Riverside upon signing and then$25,000 each year for a total of$150,000.
- A total work spends of US
$3,750,000 for an initial51% interest and second option total spending of US$6,000,000 t o earn80% interest.
Option agreement terms:
- First Option:
- 5 years to earn
51% by spending US$3.75M in work and paying US$150,000 in cash payments to Riverside with required work of at least$500,000 in the first year for the Option and Riverside has the drill permits in hand. Fortuna has paid Riverside the initial$25,000 on signing and pays$25,000 m ore on filing the agreement in Mexico. Then pays Riverside$25,000 each year plus Riverside acts as operator for the program with a10% management fee on top of the work spending commitments each year.
- 5 years to earn
- Second Option:
- Upon completion of First Option, Fortuna may elect to progress with a second option to earn to
80% by spending an additional$2.25M in work over 3 additional years.
- Upon completion of First Option, Fortuna may elect to progress with a second option to earn to
- Third Option:
- After completing Second Option, Fortuna may elect within 120 days to pay Riverside
$5M cash and grant Riverside a2% NSR where1% NSR may be purchased before commercial production for$3M thereby Fortuna earning100% interest in the project.
- After completing Second Option, Fortuna may elect within 120 days to pay Riverside
Riverside's President and CEO, John-Mark Staude, stated: "We are delighted to partner with Fortuna Silver as we have had a productive and respectful relationship having worked in parallel in Mexico for over 15 years. Riverside has invested in working up the project to an actionable stage and consolidated the tenures making this a highly prospective property that warrants the type of deep and thorough exploration attention that this agreement provides."
Riverside will be reimbursed for all annual concession maintenance fees, property taxes, access fees, and any other payments required to maintain the Project. As Operator, Riverside will manage the exploration programs and be entitled to collect administration fees of
Riverside has the right to sell interest in the joint venture or royalty through a first right of offer (ROFO). Similarly, Fortuna can do the same providing Riverside with first right of offer.
Cecilia Project:
Riverside Resources has undertaken comprehensive exploration efforts at the property, including drilling activities that have yielded significant gold intercepts. Notably, drill results have intersected near surface promising intercepts such as 37 meters at 1.5 grams per ton of gold (>50 gram meter) within the rhyodacite dome, showcasing the property's substantial potential at shallow depths. The project has high potential to follow these intercepts and go for larger intersections and big potential targets at depth.
What distinguishes this project is the potential of a preserved fertile dome system. The Magallanes Target, situated at the central part of the project, exhibits interaction within extensive NE-NW structures, presenting a compelling opportunity for the discovery of high-grade ore shoots and/or bulk-mineable epithermal gold-silver deposits. Moreover, the geological framework of the project, notably its host rock and stratigraphy as evidenced in the surrounding targets (e.g. in the Casa de Piedra Target), suggest the presence of mantos containing disseminated and/or replacement Au-Ag enriched polymetallic mineralization at depth. This geological scheme of the Cecilia Project resembles the Tertiary-age rhyolite systems, like the La Pitarrilla Ag-Pb-Zn project that has a total In-pit and Underground (Oxide, Transition and Sulphide) of about 844M AgEq*, and Fresnillo's San Julian Ag-Au Mine (~350M AgEq**), both situated in Durango, Mexico and also located in the Sierra Madre Volcanic Province.
* See Endeavour Silver press release date December 8, 2022
** Obtained from Fresnillo public presentation, Hermosillo, Oct 2016
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
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.
info@rivres.com
Phone: (778) 327-6671
Fax: (778) 327-6675
Web: www.rivres.com
Mehran Bagherzadeh
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/201529
FAQ
What is the latest agreement signed by Riverside Resources Inc. related to the Cecilia Gold Silver Project?
How can Fortuna Silver earn a majority interest in the Cecilia Gold Silver Project?
Where is the Cecilia Gold Silver Project located?
What are some key highlights of the agreement between Riverside Resources Inc. and Fortuna Silver?