Riverside Resources (TSX-V: RRI) is a prospect generator operating primarily in Mexico.
It leverages its 75,000+ location mineral database and its seasoned management to target and acquire high-quality assets on the cheap, and then fund them via joint ventures and strategic partnerships with other companies. This allows Riverside to advance and derisk its properties with minimal dilution.
For example: Riverside has only gone to the market once to raise capital in the last six years.
As such, it has an incredibly sound share structure with no outstanding warrants.
It also has numerous catalysts ahead via the projects it owns and is advancing, the projects it has available for partnership, the projects on which majors are spending money to earn in, and the payments, royalties, and shares from juniors to which it’s optioned projects.
Its flagship is the 100%-owned Peñoles gold-silver project in Durango, Mexico, which consists of two historic silver mines – Jesus Maria and San Rafael – an oxide gold prospect – El Capitan – and numerous other targets. The ~$5M that was spent by partners from 2012-2015 was enough to produce an initial inferred 43-101 resource of 305,000 ounces of gold at 0.46 grams per tonne and 15,150,000 ounces of silver at 62.3 grams per tonne.
Riverside can also earn in to 100% of the Cecilia gold project in Sonora, Mexico. It has pieced together the 1,000 hectare project from Gunpoint and Millrock Resources.
Riverside also has available for option the Tajitos Gold Project in Sonora. It’s a 61 square kilometer project on which 2016 drilling returned high grade gold starting at 48 meters.
It has the 23 square kilometer La Silla project available for option. It acquired 100% of the project via a lottery process. The former owner was a Yamana subsidiary.
And it has the 12.4 square kilometer Ariel copper-gold project in Sonora.
The Glor gold project in Sonora, Mexico is optioned to Centerra Gold (C$2B market cap), which can earn in to 70% of the project by spending US$3.5 million on exploration through 2020. Riverside collects a 10% fee on that money as the project manager.
The Thor copper project in Sonora is optioned to Antofagasta Minerals (US$10B market cap), which can earn in to 65% by spending $5 million on exploration through 2019. Antofagasta has so far earned in to 51% of the project. Riverside gets a $3 million cash payment when Antofagasta reaches the full 65% earn-in.
The Clemente silver-gold project in Sonora is optioned to Silver Viper Minerals (private), which can earn a 100% interest in the project by paying a total of C$750,000, two million Silver Viper shares, and spending C$4 million in exploration through 2021. Riverside also retains a 2% net smelter royalty (NSR) that Silver Viper can purchase for C$4 million for a limited time before the buy-back option expires.
The Sugarloaf Peak gold project in Arizona is optioned to Croesus Gold (private), which has earned in to 100% of the project by paying C$750,000 and issuing six million shares. Riverside retains a 2% NSR. Croesus is expected to go public in 2017, and the appreciation of its shares is a clear benefit to Riverside.
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