Riverside Resources (TSXV: RRI) announced today that it has signed an exploratory earn-in agreement with Hochschild Mining for its 100%-owned La Union gold-silver project in Sonora, Mexico.
The business claimed in a statement that “this new agreement enables the project to immediately move on with a comprehensive exploration program and reflects both parties’ belief in the potential for speedy discovery of new gold-silver and base metal scattered deposits on the 26 km2 property.”
According to John-Mark Staude, President and CEO, “We are excited to collaborate with Hochschild Mining again, as we have had a fruitful and excellent working relationship on multiple previous projects.
Riverside has invested in bringing the project to a viable stage and consolidating the tenures, making this a highly promising property that merits the level of exploration funding provided by this agreement.”
Hochschild can earn an undivided 51 percent during Phase I Earn-in Option by expending US$8,000,000 in exploratory expenditures over five years, according to a news statement. Hochschild has the option to form a 51:49 joint venture after completing Phase I commitments.
Riverside will have the option to sell its part in the project to Hochschild for US$20,000,000 if the Phase II Earn-in is completed, while keeping a 1% net smelter royalty.
Hochschild can earn an additional 24 percent during Phase II Earn-in Option by spending an additional $3,000,000 on exploration and delivering a comprehensive feasibility study over three years.
Riverside is a value-creating and discovery-driven exploration firm.
The corporation owns gold, silver, and copper holdings as well as royalties throughout North America.