Riverside Resources Signs Letter of Intent with Questcorp Mining to Option the Union Project for $5,500,000 of Total Expenditures
Rhea-AI Summary
Riverside Resources Inc. (TSXV: RRI) (OTCQB: RVSDF) has signed a Letter of Intent with Questcorp Mining Inc. (CSE: QQQ) for the La Union project in Sonora, Mexico. Questcorp can acquire 100% interest in the project by investing $5,500,000 over 4 years. Riverside will receive $100,000 and 19.9% ownership in Questcorp. The project is a large, carbonate-hosted gold district with high-grade gold-zinc deposits and past mining operations. Riverside will remain the program operator during the option term and retain a 2.5% net smelter returns royalty on commercial production. The transaction is subject to various conditions, including regulatory approvals and completion of Questcorp's concurrent financing of at least $1,500,000.
Positive
- Riverside to receive $100,000 and 19.9% ownership in Questcorp
- Questcorp to invest $5,500,000 in the La Union project over 4 years
- Riverside retains 2.5% net smelter returns royalty on commercial production
- Riverside remains the program operator during the option term
Negative
- Transaction completion subject to various conditions and approvals
- No guarantee that the Transaction will be completed as proposed
News Market Reaction – RVSDF
In the trading session that priced this news, RVSDF gained 2.54%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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 (
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
Transaction Details:
In accordance with the terms of the Transaction, Questcorp can acquire a one-hundred percent (
| Deadline | Cash Payment | Share Issuance | Exploration Expenditures |
| Entering into Letter of Intent | (Paid) | Nil | N/A |
| Closing of the Transaction (Signing of the Definitive Agreement and conditions) | * | N/A | |
| First Anniversary of Closing | Nil | * | |
| Second Anniversary of Closing | * | ||
| Third Anniversary of Closing | * | ||
| Fourth Anniversary of Closing | * | ||
| Total | * |
*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 (
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
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
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
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/222177