Quarterly Address from the President
The month of April has brought a major sell off in gold and other commodities, yet through the challenges Riverside has announced the richest and strongest strategic alliance in the Company’s history. Riverside’s new partner, Hochschild Mining, will fund the first $5M on each property designated for advancement, and then pay Riverside a $3M cash bonus upon earn-in to a 65% interest. There is no question that this has been a difficult year for stock prices, but we are forwarding assets and defining potential for resources regardless of the market’s current interest level in junior exploration. With Riverside’s solid treasury of $6M and annual expenditure of around $1.5M we have at least 4 years operating capital and no debt. We are well-positioned with cash in the bank and financial support from majors to acquire good assets at a discount if challenging market conditions persist.
The Hochschild $2,250,000 generative portion of the Exploration Alliance provides operating funds for Mexico of $750,000 per year and will be used to work on new target areas while we still own free and clear the portfolio of properties Riverside has already generated. Riverside continues to evaluate cost effective acquisition opportunities to acquire strategic assets in this market as well as progressing our farm outs and optioned properties with partner funding. The new Exploration Alliance with major metal producer Hochschild Mining provides further financial backing to aggressively pursue precious metal targets within the prolific Sonora Mega-shear Gold belt.
Over the coming months the Company expects drill results from a partner-funded program currently underway at the historic Jesus Maria Silver Mine located within the 350 km² Penoles Project. Riverside also expects drilling at the Cerro Azul Copper-Gold Project and further alliance-funded drill programs later this year.
This is where I am today as I write this note. In the field with our alliance partner,
Cliffs Natural Resources, reviewing copper rich drill cores from the open pit copper
system at Riverside’s La Huacana Project.
Riverside believes that securing strong partnerships with major metal producers during the current market conditions has positioned the Company for significant growth opportunities and long term staying power in the months and years ahead. With this approach in mind, the Company will continue to explore further partnerships that will support Riverside’s ability to deploy its entrepreneurial exploration team and drive towards making economic discoveries in stable jurisdictions.
As one of the Company’s biggest shareholders I thank you for the continued interest and support in Riverside’s growth and development.
President and CEO