- Riverside Resources (TSXV:RRI) has entered into an option agreement with Minera Hochschild Mining, regarding the Los Cuarentas Project
- The Mexican subsidiary of Minera Hochschild PLC will come on board as Riverside Resources’ partner on the project
- The total deal is worth approximately C$42.25 million, most of which will come in exploration expenditures
- The three-tranche option agreement allows Minera to acquire up to a 100 per cent interest in the property
- Riverside Resources (RRI) is in the grey and is trading at 20 cents per share
Riverside Resources (TSXV:RRI) has entered into an option agreement with Minera Hochschild Mining, regarding the Los Cuarentas Project.
Minera Hochschild SLC made the agreement though its Mexican subsidiary Minera Hochschild Mexico S.A.
The agreement will allow the Los Cuarentas project to immediately move forward on its planned exploration program.
Upon signing the deal, Hochschild will pay Riverside approximately C$122,500 in cash, as a reimbursement for maintenance fees incurred on the project.
The deal then allows Hochschild to earn-in an undivided 51 per cent interest for approximately C$10.87 million in exploration on the property over the next five years.
After completing this work, Hochschild can elect to form joint venture with Riverside.
Hochschild then has the option to earn a further 24 per cent by spending approximately $4.07 million more on exploration work.
If Hochschild gets this far, then it can then pick up the remaining 25 per cent of Riverside’s stake for a cash payment of approximately $27.19 million. If all tranches are met, Riverside will still hold onto a one per cent net smelter royalty.
President and CEO of Riverside Resources John-Mark Staude said the company was delighted to partner with Hochschild Mining in Mexico.
“We both see significant discovery potential at Los Cuarentas and our team is keen to get going in the field with safe, cost-effective exploration work to test a series of drill targets in short order,” he said.
Riverside Resources (RRI) is in the grey and is trading at 20 cents per share at 3:22pm EDT.