RIVERSIDE
RESOURCES SIGNS AN AGREEMENT TO OPTION CHAPALOTA GOLD PROPERTY TO GUERRERO
EXPLORATION INC.
March 7, 2011 � Vancouver, BC: Riverside Resources Inc. ("Riverside"
or the "Company") (TSX-V: RRI) is pleased to announce that Riverside
and Guerrero Exploration Inc. (TSX-V: GEX) have entered into a binding
letter agreement to jointly advance Riverside�s 100%
owned Chapalota Property (the �Property�),
located in Sinaloa, Mexico.
Guerrero Exploration Inc. (�Guerrero�) can acquire a sixty percent (60%)
interest and exercise the Initial Option by issuing Riverside
an aggregate 1,250,000 Guerrero shares, making total cash payments of
$200,000 to Riverside, and incurring an aggregate
$2,250,000 in exploration expenditures on the Chapalota
Property within 36 months of the agreement. Included in the exploration
expenditure requirements is a minimum of 1,250 metres
of drilling each year, with Riverside
acting as operator until the Initial Option is exercised.
�This agreement builds on the strong existing relationship between Riverside
and Guerrero, as the companies are already jointly exploring the Cerro Azul
Copper-Gold Project in Guerrero,
Mexico. Riverside
continues to build the strength of its joint-venture portfolio now with
seven assets being advanced with anticipated drilling by partners. Riverside
continues to leverage its unique country-wide knowledge to acquire and
outline drill targets in Mexico. In the
coming months the company looks toward potential drill discoveries and
income from the numerous share and cash payments from option agreements now
being progressed,� stated John-Mark Staude,
President and CEO of Riverside Resources Inc.
Property Details:
The 91 km� Chapalota Property is located
on the western margin of the Sierra Madre Occidental Region approximately
50 km northeast of the city of Mazatlan in
south-central Sinaloa, Mexico.
The Chapalota Property is located to the north of
Silvermex�s Rosario Mine and south of US Gold�s Majistral Mine in an abundantly rich mining region of Mexico.
Riverside previously
completed rock chip channel samples that returned values ranging from
<0.5ppb to 32 g/t gold during the most recent field exploration program.
The 2010 exploration program discovered distinct high-grade gold zones that
were identified using rock chip channel samples, guided in part by previous
soil and stream sediment sampling results Riverside
had completed during exploration prospecting and reconnaissance. The anomalous
gold zones show potential to become drill targets upon further
investigation and the new exploration program at Chapalota
will immediately follow up with trenching, IP, and magnetic work.
For more details on the Chapalota Property
visit the Riverside Resources Inc. website and view the Chapalota
Property profile: http://www.rivres.com/projects/additional-mexico-projects/chapalota.html
Additional Agreement Terms:
The First year Firm Commitments on the part of Guerrero will include
payment of 450,000 shares, $50,000 (6 & 12 month payments), and
$500,000 in exploration expenditures. Any deficiency in the Firm Commitment
shall be remedied by way of cash payment. The required investment to
complete the Initial Option will come to an aggregate 1,250,000 Guerrero
shares, total cash payments of $200,000 to Riverside,
and the incurrence of $2,250,000 in exploration expenditures on the Chapalota Property within 36 months of the agreement.
Upon the exercise of the Initial Option, Riverside
will grant Guerrero an irrevocable option to acquire an additional 10%
interest in the Chapalota Property (the
�Additional Option�). Guerrero can exercise the Additional Option by incurring
an additional $1,500,000 in exploration expenditures on the Chapalota Property and paying Riverside
$500,000 on or before the second anniversary date of completing the first
option. Upon the exercise of the Initial Option, provided that Guerrero surrenders
its right to the Additional Option, Riverside
and Guerrero shall be deemed to have formed a joint venture (the �Joint
Venture�) with both company�s holding 40% and 60% interest respectively.
Complete agreement terms will be filed on SEDAR and available at www.sedar.com.
The scientific and technical data contained in this news release has
been prepared under the supervision of Mark J Pryor, Pr.Sci.Nat.,
an independent qualified person to Riverside Resources, who is responsible
for ensuring that the geologic information provided in this news release is
accurate and acts as a "qualified person" under National
Instrument 43-101 Standards of Disclosure for Mineral Projects
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. 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 at www.rivres.com.
ON
BEHALF OF RIVERSIDE RESOURCES INC.
"John-Mark
Staude"
Dr.
John-Mark Staude,
President & CEO
For additional information contact:
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