(Kitco News) - Riverside Resources (TSXV: RRI) reported today that it has entered into an exploration earn-in agreement with Hochschild Mining for Riverside's 100% owned La Union gold-silver project in Sonora, Mexico.
“This new agreement enables the project to immediately move ahead with a robust exploration program and reflects the belief, by both parties, of the potential for rapid discovery of new gold-silver and base metal disseminated deposits on the 26 km2 project,” the company said in a statement.
According to a press-release, during Phase I Earn-in Option, Hochschild can earn an undivided 51% by incurring US$8,000,000 in exploration expenditures over five years. Upon completion of Phase I obligations, Hochschild can elect to form a 51:49 joint venture.
During Phase II Earn-in Option, Hochschild can elect to earn an additional 24% by incurring a further $3,000,000 in exploration expenditures and delivering a completed feasibility study over three years.
Upon Hochschild completing the Phase II Earn-in, Riverside will have the option to sell its interest in the project to Hochschild for US$20,000,000, while retaining a 1% net smelter royalty.
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President and CEO John-Mark Staude stated, "We are delighted to partner again with Hochschild Mining as we have had a productive and positive relationship working together on several past projects. Riverside has invested in working up the project to an actionable stage and consolidated the tenures making this a highly prospective property that warrants the type of exploration spending that this agreement provides."
Riverside is an exploration company driven by value generation and discovery. The company has a portfolio of gold-silver and copper assets and royalties in North America.
