Riverside Resources Signs Definitive Agreement to Option Three Drill Ready Projects in Durango-Zacatecas, Mexico to Mexigold Corp.
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/14/11 -- Riverside Resources Inc. ('Riverside' or the 'Company') (TSX VENTURE: RRI)(PINK SHEETS: RVSDF)(FRANKFURT: R99) is pleased to announce that, further to its news release dated February 11, 2011, Riverside and Mexigold Corp. (TSX VENTURE: MAU) have completed a definitive option agreement (the 'Agreement'),to jointly advance Riverside's 100% owned Catrina, Escondida and Pedernal properties (the 'Durango Properties'). The drill-ready Durango Properties cover an area of more than 760 square kilometers and are located in Durango and northernmost Zacatecas, Mexico.
Mexigold Corp. ('Mexigold') can acquire a seventy-five percent (75%) interest in the Durango Properties by issuing Riverside an aggregate 2,600,000 Mexigold shares, making total cash payments of $500,000 to Riverside, and incurring an aggregate $4,000,000 in exploration expenditures on the Durango Properties within 36 months of the Agreement. Included in the exploration expenditure requirements is a commitment to drill a minimum of 3,000 metres on the Durango Properties within 12 months from the date of the Agreement.
Terms of the Option
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Exploration
Due Dates Cash Payments Shares(1) Expenditures
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On approval of the Agreement by the $50,000 (of 200,000 Nil
TSX Venture Exchange which $25,000
has been paid)
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6 months from the date of the Nil 200,000 $200,000
Agreement
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12 months from the date of the $100,000 400,000 $1,000,000
Agreement
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24 months from the date of the $150,000 600,000 $1,000,000
Agreement
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36 months from the date of the $200,000 1,200,000 $1,800,000
Agreement
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Totals $500,000 2,600,000 $4,000,000
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The share issuances indicated are priced at a minimum value of $0.50 per share. In the event that at a share issuance date or the hold period expiry date, the market value of the common shares (calculated as the 30-day volume weighted average) is less than $0.50, then the number of shares to be issued on that date or the number of shares becoming free on that date, shall be adjusted to equal the number that results when the original number of shares contemplated above is multiplied by $0.50 and the resulting number is divided by the actual market value at that date.
This Agreement is subject to TSX Venture approval.
The Durango Properties
The Durango Properties are located in the States of Durango and Zacatecas, Mexico. The Durango Properties include the 'Catrina,' 'Escondida' and 'Pedernal' mineral exploration concessions covering over 76,000 hectares. All of these projects were developed through the culmination of 2-1/2 years of generative exploration and targeting through the Riverside-Kinross Exploration Alliance. Riverside's geologists completed extensive groundwork identifying multiple drill ready targets.
The Catrina Gold Project covers over 14,000 hectares and located within the prolific gold-silver belt of the Mesa Central Region in Durango. Geochemistry of the alteration zone shows a strong gold anomaly extending over a strong of more than 3 km2. The geophysical IP response chargeability, trace element geochemistry (gold-silver-lead) and the mapped geology at Catrina are similar to Goldcorp's Camino Rojo. Riverside's exploration program on the Catrina property identified four principal target zones and a first phase 10-hole 2,600 metre drill program has been designed to test geology and geochemistry of the system.
The Escondida Gold Project is comprised of over 37,000 hectares in northern Zacatecas, situated within a NW trending structural corridor hosting mines such as Castillo, San Sebastian and Miguel Auza. Riverside completed an initial exploration program on the property and identified two east-west striking mineralized trends within a 2.1 km by 1.3 km zone defined as the primary target area. The outcropping mineralized structures and projection beneath alluvial cover show many similarities to the nearby Valenciana and San Jose de Reyes mining districts. A first phase 10-hole 2,500 metre drill program has been recommended.
The Pedernal Gold Project is comprised of over 24,000 hectares, located 60 kilometres north of the town of Rodeo, and immediately west of the Penoles District in northern Durango State. The Pedernal project contains anetwork of parallel veins with moderate argillic alteration and indications of what appears to be the upper part of an epithermal system. Recent exploration by Riverside identified four principal northwest trending mineralized zones with up to 3.5 km of continuous veining and total vein strike lengths of up to 12 km. A first phase 4-hole 1,000 metre drill program has been recommended to test the potential depth of the system.
For more detailed information, maps and figures visit the Riverside website at www.rivres.com or call our offices to speak with our corporate communications team.
The scientific and technical data contained in this news release has been prepared under the supervision of Mark J Pryor, Pr.Sci.Nat.,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
About Riverside Resources:
Riverside is a well-funded prospect generation team of focused, proactive gold discoverers with the breadth of knowledge to dig much deeper. The Company currently has approximately $9,000,000 in the treasury and fewer than 33,000,000 shares issued. The Company's model of growth through partnerships and exploration looks to use the prospect generation business approach to own resources, while partners share in de-risking projects on route to discovery. Additional property information on the Company's projects can be found on the Riverside Resources Inc. website at www.rivres.com.
ON BEHALF OF RIVERSIDE RESOURCES INC.
Dr. John-Mark Staude, President & CEO
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.
Contacts:
Riverside Resources Inc.
Joness Lang
Manager, Corporate Communications
(778) 327-6671
(778) 327-6675 (FAX)
info@rivres.com
www.rivres.com
Riverside Resources Inc.
Kaley Reid
Corporate Communications
(778) 327-6671
(778) 327-6675 (FAX)
info@rivres.com
www.rivres.com