Riverside Resources Signs Precious Metals Exploration Alliance With Kinross Gold Corporation For Mesa Central Region, Mexico
January 22, 2009 -- Vancouver, British Columbia: Riverside Resources Inc. (TSX-V: RRI) ("Riverside" or the "Company") is pleased to announce the signing of a Precious Metals Exploration Alliance (the "Alliance") focused on the Mesa Central Region of Mexico. The general terms of the Alliance recognize Riverside's historic work in Mexico, as well as its proprietary database and on-going generative field programs. Under the terms of the Alliance, Kinross will invest US$800,000 and Riverside will invest US$300,000 to fund exploration in the Mesa Central Region over the next two years.
Riverside and Kinross have entered into this Alliance with the objective of identifying potential high quality precious metal deposits in the Mesa Central Region of Mexico. The agreement is not a private placement, but rather a direct investment into the identification and exploration programs for mineral properties in Mexico. As per the terms of the agreement, Kinross will contribute US$400,000 per year and Riverside will contribute US $150,000 per year, each over a two year period. The agreement also states that the Alliance can be extended upon mutual agreement. Projects identified and acquired through the Alliance will be progressed as joint ventures between Kinross and Riverside with varying initial ownership percentages depending on the nature of project. A material change report will be filed on SEDAR with details concerning the agreement between Kinross and Riverside.
"Riverside's corporate objectives continue to remain on track" stated President and CEO, John-Mark Staude. "Since inception Riverside has been consistent in building a relatively low-risk, and high quality property portfolio, and during these challenging times in the market, is continuing to progress the portfolio, including those properties currently 100% owned by Riverside, by creating exploration alliances and joint ventures. The Company has a strong cash position, low operating costs and work commitments, a relatively low number of shares outstanding. The corporate mandate to discover and advance high quality mineral deposits through cost effective, mutually beneficial agreements with strong corporate partners is exemplified by this Alliance with Kinross."
The Mesa Central Region of Mexico, where this Alliance is to focus, is rich in precious metals. Much of Mexico's silver production which has made it the world's number one producer for over 500 years comes from this region. Additionally, gold has been produced and recent discoveries indicate that the Mesa Central has vast untapped potential for new gold discoveries. During the 1800's, Nevada was known as the "Silver State". Then, during the later half of the 1900's, Nevada became a world leader in gold production. The Mesa Central has the potential to undergo a similar transformation and the Alliance is a key step for Riverside to move ahead in identifying and progressing key prospects. Recent discoveries by Penoles and MAG Silver at Fresnillo, Goldcorp bringing the Penasquito Mine into production, and many other gold-silver mines now operating, demonstrate a major potential for growth in precious metal production over the coming years. With this growth in production, Riverside anticipates precious metal production in the region to increase and the Alliance aims to be a leader in finding new areas and gaining exposure to high quality projects in the coming months.
In order to lower 2009 cash commitments and to focus on its business plan in Mexico, Riverside has elected to cancel the option agreement with Copper Ridge Explorations Inc. for the Scheelite Dome Project. Although Riverside was successful in identifying gold mineralization on the property, the current global financial crisis highlights the importance for Riverside to focus on the areas of the business that will create value most effectively for Riverside shareholders in 2009, which include the Alliance with Kinross and Riverside's 100% owned properties in Mexico and Arizona where 2008 results met or exceeded the expectations of the Company.
Riverside currently has approximately $3.2M in working capital, no debt, and approximately 17.8 million shares issued and outstanding. For 2009, Riverside has agreements in place that require joint venture partners to spend a minimum of $600,000 on properties in its portfolio and has requirements to spend less than $400,000 to keep its entire portfolio in good standing. Including the participation of Kinross in the Alliance, Riverside believes it has sufficient working capital to fund its exploration and operating expenditures for a further three years without raising additional capital. Riverside's strong liquidity puts it in a solid position to look for growth opportunities. Riverside is advancing its two potentially significant open pit gold projects in North America, the Sugarloaf Peak Project and the Penoles Project, both of which have demonstrated gold endowment and potential to expand.
More information on Riverside as well as its active joint ventures can be found on its website www.rivres.com.
Certain statements in this press release may be considered forward-looking information, which statements can be identified by the use of forward looking terminology (e.g., "expect" or "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. Riverside disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For additional information contact:
President & CEO, Director
Riverside Resources Inc.
Phone: (778) 327-6671
Fax: (778) 327-6675
Corporate Communications Manager
Riverside Resources Inc.
Phone: (778) 327-6671
Fax: (778) 327-6675
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