Dec 7 2016
Riverside Resources Inc. ("Riverside" or the "Company") (TSX VENTURE:RRI)(OTC PINK:RVSDF)(FRANKFURT:R99), is pleased to announce that it has signed an option agreement (the "Agreement") with Silver Viper Minerals Corp. ("Silver Viper") for the Clemente Project (the "Project") in Sonora, Mexico. Silver Viper can earn an undivided 100% interest in the Project by paying $750,000 in cash, 2,000,000 Silver Viper common shares and incurring $4,000,000 in exploration expenditures within five (5) years. Riverside will retain a 2% net smelter returns royalty (NSR).
Riverside's President and CEO, John-Mark Staude stated, "Riverside is pleased to advance the Clemente Project with a reputable group that has a track record of making discoveries in Mexico including La Preciosa with Orko Silver Corp. and Coneto and Sandra Escobar with Orex Minerals Inc. The Clemente area of Sonora has good surface access, is readily workable year-round, and is in close proximity to open pit gold mines in Sonora. Initial partner-funded exploration is anticipated to commence in the first half of 2017 and we look forward to potential drilling at Clemente in the near future."
Option Agreement Details:
| Date/Time |
Cash* |
Shares |
Exploration Work* |
| Signing LOI |
$15,000 (paid) |
Nil |
Nil |
| Signing Definitive Agreement |
$25,000 (paid) |
1,000,000 (paid) |
Nil |
| 1st Anniversary |
$50,000 |
Nil |
$350,000 |
| 2nd Anniversary |
$75,000 |
Nil |
$500,000** |
| 3rd Anniversary |
$100,000 |
Nil |
$750,000 |
| 4th Anniversary |
$150,000 |
250,000 |
$1,000,000 |
| 5th Anniversary |
$335,000 |
750,000 |
$1,400,000 |
| Total |
$750,000 |
2,000,000 |
$4,000,000 |
| |
*All amounts in Canadian dollars
**Silver Viper must complete a minimum of 2,500 metres of drilling before the 2nd anniversary of the closing date.
Riverside will retain a 2% NSR, with Silver Viper having the right to purchase 100% of the NSR for $4,000,000 within 5 years of the closing date of this Agreement. Silver Viper will also have the right to purchase 50% of the NSR for $3,000,000 within 8 years of the closing date.
Additional Agreement details can be found by viewing the Company's SEDAR filings.
About the Clemente Project:
The Clemente Project was originally identified and acquired using Riverside's mineral location database for Mexico. The Project is located in the heart of the Sonora Megashear and only 7 km from the past producing Cerro Colorado Mine. Previous field work completed by Riverside discovered high-grade silver exceeding 2 kg/t in outcrops.
Previous work consisted of rock chip samples and returned silver assay values from <5 g/t up to 2,900 g/t Ag and gold values from <5 ppb up to 5.4 g/t Au. Numerous rock chip samples returned values over 50 g/t silver, which is uncommon for this region of Mexico and warrants further follow-up work to refine initial target concepts and develop a proposed plan for potential drilling on the silver areas. The Project has excellent infrastructure with power, water and road access making the targets easily accessible and cost effective for future exploration and development.
Qualified Person and QA/QC:
The scientific and technical data contained in this news release pertaining to the Clemente Project was reviewed by Locke Goldsmith, P. Eng., P. Geo., 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.
Source: http://www.rivres.com/