Riverside Closes $5.5M Financing
March 4, 2011 – Vancouver, BC: Riverside Resources Inc. ("Riverside" or the "Company") (TSX-V: RRI) is pleased to announce today that it has closed the private placement previously announced on February 4 and 17, 2011 (the “Offering”). A total of 5,800,000 units were issued in the financing at a price of $0.95 per unit for gross proceeds to the Company of $5,510,000.
Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one additional common share for a period of two years at a price of $1.40 in the first year and $1.60 in the second year. The term of the warrants is subject to an accelerated exercise provision that triggers a shortened exercise period in the event that the Company’s shares trade at a volume weighted average trading price of $1.90 or higher for 15 consecutive trading days in the first year or $2.30 or higher for 15 consecutive trading days in the second year.
The Offering was led by Sprott Inc’s recently acquired Global Resource Investments Ltd. In connection with the private placement, finder’s fees were paid by issuing an aggregate of 275,951 units at a deemed price of $0.95 per unit, having the same terms and conditions as the units under the Offering, and 189,473 compensation warrants. Each compensation warrant entitles the holder to acquire one common share at a price of $1.20 per share, exercisable for a period of 24 months from the date of the closing of the Offering. All units and warrants so issued will be subject to a four month hold period expiring July 5, 2011.
The net proceeds of the financing will be used for property acquisitions, advanced exploration and targeted drilling in Mexico, and for general working capital.
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 32,100,000 shares issued. Riverside anticipates up to 15,000 meters of drilling on the Company’s projects in 2011 by its partners. 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 atwww.rivres.com.
ON BEHALF OF RIVERSIDE RESOURCES INC.
Dr. John-Mark Staude, President & CEO
For additional information contact:
Manager, Corporate Development
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