Riverside Signs $1.8 M Three Year Strategic Alliance with Antofagasta for Copper-Gold Exploration in B.C.
July 7, 2011– Vancouver, BC: Riverside Resources Inc. ("Riverside" or the "Company") (TSX-V: RRI) is pleased to announce the signing of a three year, C$1.8M strategic exploration alliance (the “Alliance) with Antofagasta Minerals S.A., a subsidiary of Antofagasta plc (“Antofagasta”) for generative exploration throughout the primary copper belts of British Columbia, Canada. The Alliance will focus on identifying new large copper deposits using Riverside’s extensive technical knowledge of copper systems and generative fieldwork to follow up and delineate a number of prospective target areas. Riverside will be the operator for all exploration activities of the Alliance and all decisions relating to the Alliance will be made jointly through a Technical Committee (“TC”) comprising two (2) representatives from each of Riverside and Antofagasta.
Properties that are identified and deemed to be of interest will become Designated Properties whereby Antofagasta will have the opportunity to earn a 65% interest by completing a four year, $5,000,000 work program. Once earn-in on a Designated Property is completed, Antofagasta will pay Riverside $3,000,000 and that property will be advanced under a joint venture agreement.
“The Riverside team has worked hard over the past four years to expand our generative capabilities and exploration team, and this alliance is a very significant step for Riverside. Finalizing an exploration agreement with Antofagasta allows Riverside to build and further diversify its portfolio geographically by sustainably entering into Canadian exploration. By combining Riverside’s prospect generation and exploration skill with Antofagasta’s capital and operating experience, this partnership has the potential to add significant value to both organizations. We look forward to building a strong relationship over the initial three years and for years onward.”
–John-Mark Staude, President & CEO of Riverside Resources Inc.
Antofagasta will provide the Alliance with $600,000 in funding on an annual basis and Riverside will use the strength of its corporate base in Vancouver to launch the joint exploration and begin evaluating properties from a technical and economic perspective within the defined exploration area in BC. To view more details on the Riverside-Antofagasta Exploration Alliance please visit the Company’s website or click the following link:http://www.rivres.com/projects/strategic-alliances/antofagasta-alliance.html
Key Alliance Terms:
The Alliance will target properties containing Cu, Au, Ag, Mo, Pb, Zn, Ni and PGM. All properties identified by Riverside under the Alliance that are not jointly pursued will then be available for either company to pursue on its own. All decisions relating to the Alliance will be made jointly by the Technical Committee with Antofagasta holding a tie-breaking vote while sole funding. Unless otherwise specified, Riverside will be the designated operator for all exploration activities of the Alliance. All property acquisitions will be in the name of Riverside until earn-in is completed.
Projects designated for further advancement will have deemed ownership of 51% and 49% for Antofagasta and Riverside respectively. Antofagasta will spend a minimum of $5,000,000 within four (4) years from the date the Designated Project is chosen, with a minimum expenditure of $1,000,000 in the first year, and $1,000,000 in the second year (the “Milestone”). If Antofagasta fails to meet the Milestone, Riverside would have the right but not the obligation to acquire 100% ownership of the Designated Project. At any time after the completion of the Milestone Antofagasta can elect to enter into a Joint Venture with Riverside (incorporated or unincorporated), provided that it makes a one-time cash payment to Riverside of $3,000,000.
If Riverside’s interest in the Designated Project is reduced to 10% or less, this interest will be converted to a 2% NSR.
About Riverside Resources Inc.:
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 $10,000,000 in the treasury and fewer than 35,000,000 shares issued. Riverside`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.
About Antofagasta Minerals S.A. (“Antofagasta”): Antofagasta is the mining division of Antofagasta plc, a Chilean-based copper mining company listed on the London Stock Exchange and a constituent of the FTSE-100 Index, which also has interests in transport and water distribution. Antofagasta plc's activities are primarily concentrated in Chile where it owns and operates three copper mines: Los Pelambres, El Tesoro, and Michilla. Total production in 2010 included 521,100 metric tonnes of copper in cathode and concentrate, 8,800 metric tonnes of molybdenum in concentrate and 35,100 ounces of gold. With a fourth mine, Esperanza, now being commissioned, the Group is expected to increase total production in 2011 to between 620,000 – 640,000 metric tonnes of copper. Antofagasta plc also has ongoing exploration, evaluation, or feasibility programs in North America, Latin America, Europe, Asia, and Australia.
ON BEHALF OF RIVERSIDE RESOURCES INC.
Dr. John-Mark Staude, President & CEO
For additional information contact:
Manager, Corporate Development
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.
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