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17.06.2010
RIVERSIDE RESOURCES SIGNS $1.5 MILLION IOCG EXPLORATION ALLIANCE WITH CLIFFS NATURAL RESOURCES EXPLORATION INC. FOR THE WESTERN REGION OF MEXICO
RIVERSIDE RESOURCES SIGNS $1.5 MILLION IOCG EXPLORATION ALLIANCE WITH CLIFFS NATURAL RESOURCES EXPLORATION INC. FOR THE WESTERN REGION OF MEXICO
June 17, 2010 – Vancouver, BC: Riverside Resources Inc. ("Riverside" or the "Company") (TSX-V: RRI) is pleased to announce the signing of a significant exploration alliance with Cliffs Natural Resources Exploration Inc. (“Cliffs”) that is tasked with identifying and acquiring Iron Oxide Copper Gold (“IOCG”) projects in north west Baja California State and along the Pacific coast from western Sinaloa State to Oaxaca State, Mexico. The alliance focuses on identifying major target areas using Riverside’s proprietary Mexico specific databases (with over $8,000,000 invested in development) with extensive field follow up to delineate a minimum of four IOCG deposits within an area of 1,500,000 km². The purpose of the Alliance is to create an affiliation that will benefit from the capital and operating experience of Cliffs, and Riverside’s substantial Mexican experience and exploration expertise. Cliffs will contribute US$750,000 to the Alliance on an annual basis, for a minimum of $1,500,000 to fund the Exploration Program over a two year period, which can be extended upon mutual agreement. Once a project has been identified, Cliffs can choose to earn a 70% interest in the project by investing $4,000,000 into exploration of the project over four years.
“The Riverside team has worked hard over the past year to finalize an agreement with Cliffs that is mutually beneficial for both parties”, stated John-Mark Staude, President & CEO of Riverside, “This is a significant and positive step for Riverside. By combining Riverside’s on-the-ground teams, and Cliff’s ability to develop and operate large IOCG mines, the partnership aims to add significant value to both organizations. We have a list of targets to immediately pursue and look forward to building the partnership with Cliffs.”
The agreement is not a private placement, but rather a direct investment into the exploration programs for the identification of IOCG properties in Mexico. Projects identified and acquired through the Alliance will be progressed as joint ventures between Cliffs and Riverside.
Key Alliance Terms:
The Alliance will focus on identifying a minimum of four IOCG deposits within an area of 1,500,000 km², along Mexico’s central and northern Pacific Coast. Riverside will be the designated Manager of the Alliance and will operate all exploration activities of the Alliance. All property acquisitions will be in the name of Riverside. If Cliffs chooses not to accept a property as a Project then the property will no longer be subject to the Alliance terms and from that point forward will be included in Riverside’s property portfolio.
If Cliffs decides to pursue further investigation or development of a Project it can elect to earn a 70% interest by incurring Exploration Expenditures (Expenditures can include acquisition costs for 3rd party ground) of US $4,000,000 and completing 3,000 metres of drilling over a four year period, with a minimum expenditure of US $1,000,000 in the first year period. Cliffs will be firmly committed to a $500,000 initial expenditure; any further expenditure will be at its option.
If Cliffs fails to earn 70% interest in a Project, Riverside will acquire 100% ownership of the Project subject to the granting of a Net Smelter Royalty (“NSR”) in the Project to Cliffs as follows:
• 0.5% with a minimum expenditure of $1,000,000
• 1.0% with a minimum cumulative expenditure of $3,000,000.
At any time after Cliffs has satisfied all conditions to earn a 70% interest in a Project it can elect to enter into a Joint Venture with Riverside, provided that it makes a one-time payment to Riverside of $2,000,000 within sixty days of making such election. Once a Project has become a Joint Venture between Cliffs and Riverside, all development costs for the Project will be divided relative to each company’s interest in the Project.
Cliffs can increase its interest in the Project to 90% by completing a bankable feasibility study within four years of earning a 70% interest in the Project, subject to any force majeure extensions.
If at any time after the completion of a Joint Venture either party’s interest in the Project is reduced to 10% or less through dilution, this interest will be converted to a 2% net smelter royalty (NSR).
Iron-oxide Copper Gold in Mexico
Mexico produced 12 million tonnes of iron in 2009 and this year is planning to see a ramp up by major iron companies in Mexico, which include Arcelor Mittal, Ternium, and Altos Hornos de Mexico. Major production from Volcan, Encino, Aguila, Pena Colorada is set to expand as iron ore prices have risen and the demand growth is interpreted to be strong over the coming decade. There are over a dozen iron oxide copper gold districts identified in Mexico with a range from iron-rich examples such as Pena Colorada in Colima and Aguila in Michoacan to copper-rich examples such as El Arco and La Turquesa both of which are located in Baja California.
The Riverside-Cliffs Exploration Alliance focuses on the western Mexico magmatic belts where the largest iron and iron-copper districts are located. The Alliance will use regional datasets owned by Riverside combined with field work and new regional information to identify and acquire high potential areas in order to focus toward various IOGC exploration models. These include breccia type, iron magma type, skarn and hydrothermal variations of iron rich oxide and in some cases sulfide centers. The Cimarron project is an IOCG breccia style system in Sinaloa that falls within the Alliance area. Now with the new regional data combined with Riverside’s extensive 44,000 location mineral occurrence database and more than 12 other databases the Alliance will work to expand the identification and exploration for IOCG’s in Mexico.
About Riverside Resources:
Riverside is a well funded prospect generation exploration team of focused, proactive gold discoverers with the breadth of knowledge to dig much deeper. The company currently has approximately C$2,000,000 in the treasury and fewer than 22,000,000 shares issued. The company has an experienced exploration team that leverages its in-house technical knowledge and vast experience in the field to make discoveries. Additional property information for the Company’s projects can be found on the Riverside Resources Inc. website at www.rivres.com.
About Cliffs Explorations:
Cliffs Natural Resources Exploration Inc. is a wholly-owned subsidiary of Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF), an international mining and natural resources company.
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
Alex Mason
Corporate Communications Manager
Riverside Resources Inc.
info@rivres.com
Phone: (778) 327-6671
Fax: (778) 327-6675
Web: 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”,” 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.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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June 17, 2010 – Vancouver, BC: Riverside Resources Inc. ("Riverside" or the "Company") (TSX-V: RRI) is pleased to announce the signing of a significant exploration alliance with Cliffs Natural Resources Exploration Inc. (“Cliffs”) that is tasked with identifying and acquiring Iron Oxide Copper Gold (“IOCG”) projects in north west Baja California State and along the Pacific coast from western Sinaloa State to Oaxaca State, Mexico. The alliance focuses on identifying major target areas using Riverside’s proprietary Mexico specific databases (with over $8,000,000 invested in development) with extensive field follow up to delineate a minimum of four IOCG deposits within an area of 1,500,000 km². The purpose of the Alliance is to create an affiliation that will benefit from the capital and operating experience of Cliffs, and Riverside’s substantial Mexican experience and exploration expertise. Cliffs will contribute US$750,000 to the Alliance on an annual basis, for a minimum of $1,500,000 to fund the Exploration Program over a two year period, which can be extended upon mutual agreement. Once a project has been identified, Cliffs can choose to earn a 70% interest in the project by investing $4,000,000 into exploration of the project over four years.
“The Riverside team has worked hard over the past year to finalize an agreement with Cliffs that is mutually beneficial for both parties”, stated John-Mark Staude, President & CEO of Riverside, “This is a significant and positive step for Riverside. By combining Riverside’s on-the-ground teams, and Cliff’s ability to develop and operate large IOCG mines, the partnership aims to add significant value to both organizations. We have a list of targets to immediately pursue and look forward to building the partnership with Cliffs.”
The agreement is not a private placement, but rather a direct investment into the exploration programs for the identification of IOCG properties in Mexico. Projects identified and acquired through the Alliance will be progressed as joint ventures between Cliffs and Riverside.
Key Alliance Terms:
The Alliance will focus on identifying a minimum of four IOCG deposits within an area of 1,500,000 km², along Mexico’s central and northern Pacific Coast. Riverside will be the designated Manager of the Alliance and will operate all exploration activities of the Alliance. All property acquisitions will be in the name of Riverside. If Cliffs chooses not to accept a property as a Project then the property will no longer be subject to the Alliance terms and from that point forward will be included in Riverside’s property portfolio.
If Cliffs decides to pursue further investigation or development of a Project it can elect to earn a 70% interest by incurring Exploration Expenditures (Expenditures can include acquisition costs for 3rd party ground) of US $4,000,000 and completing 3,000 metres of drilling over a four year period, with a minimum expenditure of US $1,000,000 in the first year period. Cliffs will be firmly committed to a $500,000 initial expenditure; any further expenditure will be at its option.
If Cliffs fails to earn 70% interest in a Project, Riverside will acquire 100% ownership of the Project subject to the granting of a Net Smelter Royalty (“NSR”) in the Project to Cliffs as follows:
• 0.5% with a minimum expenditure of $1,000,000
• 1.0% with a minimum cumulative expenditure of $3,000,000.
At any time after Cliffs has satisfied all conditions to earn a 70% interest in a Project it can elect to enter into a Joint Venture with Riverside, provided that it makes a one-time payment to Riverside of $2,000,000 within sixty days of making such election. Once a Project has become a Joint Venture between Cliffs and Riverside, all development costs for the Project will be divided relative to each company’s interest in the Project.
Cliffs can increase its interest in the Project to 90% by completing a bankable feasibility study within four years of earning a 70% interest in the Project, subject to any force majeure extensions.
If at any time after the completion of a Joint Venture either party’s interest in the Project is reduced to 10% or less through dilution, this interest will be converted to a 2% net smelter royalty (NSR).
Iron-oxide Copper Gold in Mexico
Mexico produced 12 million tonnes of iron in 2009 and this year is planning to see a ramp up by major iron companies in Mexico, which include Arcelor Mittal, Ternium, and Altos Hornos de Mexico. Major production from Volcan, Encino, Aguila, Pena Colorada is set to expand as iron ore prices have risen and the demand growth is interpreted to be strong over the coming decade. There are over a dozen iron oxide copper gold districts identified in Mexico with a range from iron-rich examples such as Pena Colorada in Colima and Aguila in Michoacan to copper-rich examples such as El Arco and La Turquesa both of which are located in Baja California.
The Riverside-Cliffs Exploration Alliance focuses on the western Mexico magmatic belts where the largest iron and iron-copper districts are located. The Alliance will use regional datasets owned by Riverside combined with field work and new regional information to identify and acquire high potential areas in order to focus toward various IOGC exploration models. These include breccia type, iron magma type, skarn and hydrothermal variations of iron rich oxide and in some cases sulfide centers. The Cimarron project is an IOCG breccia style system in Sinaloa that falls within the Alliance area. Now with the new regional data combined with Riverside’s extensive 44,000 location mineral occurrence database and more than 12 other databases the Alliance will work to expand the identification and exploration for IOCG’s in Mexico.
About Riverside Resources:
Riverside is a well funded prospect generation exploration team of focused, proactive gold discoverers with the breadth of knowledge to dig much deeper. The company currently has approximately C$2,000,000 in the treasury and fewer than 22,000,000 shares issued. The company has an experienced exploration team that leverages its in-house technical knowledge and vast experience in the field to make discoveries. Additional property information for the Company’s projects can be found on the Riverside Resources Inc. website at www.rivres.com.
About Cliffs Explorations:
Cliffs Natural Resources Exploration Inc. is a wholly-owned subsidiary of Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF), an international mining and natural resources company.
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
Alex Mason
Corporate Communications Manager
Riverside Resources Inc.
info@rivres.com
Phone: (778) 327-6671
Fax: (778) 327-6675
Web: 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”,” 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.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
NEWSLETTER REGISTRIERUNG:
Aktuelle Pressemeldungen dieses Unternehmens direkt in Ihr Postfach:
<a href="http://www.irw-press.com/alert_subscription.php?lang=en&isin=CA76926M1023">http://www.irw-press.com/alert_subscription.php?lang=en&isin=CA76926M1023</a>
Mitteilung übermittelt durch IRW-Press.com. Für den Inhalt ist der Aussender
verantwortlich.
Kostenloser Abdruck mit Quellenangabe erlaubt.