RRI.V - Riverside Resources Inc

Corporate Description

Riverside is a well-funded, value-driven exploration company advancing a strong portfolio of gold, silver and copper properties in North America. Riverside follows the Prospect Generator business model and leverages the Company’s 75,000+ location database and experienced technical team to discover and acquire new exploration assets.
Website: https://www.rivres.com/
Feb 2019 Corporate Presentation: https://www.rivres.com/images/pdf/Presentation/2019/RRI_Corporate_Presentation_Feb_2019_WEB.pdf
Contact Info:
Phone: 778-327-6671
Email: info@rivres.com


FRA: R99

Social Media

Directors and Management

Name Title Professional
Additional Notes:
Staude, John-Mark President, CEO and Director M.Sci, Ph.D Past Director of Harmony Gold, Past Geologist Manager of BHP Billiton
Smith, Freeman VP Exploration P.Geo Past Executive, Corporate Development of Goldplay Exploration, Past Project Manager of Rogue Resources/ Integra Gold
Scott, Rob CFO CA, CFA, B.Sci, CFO of K2 Gold, Director of Genesis Metals, Co-Founder and Director of Pan American Hydro
Dare, Jeff Corporate Secretary BA Corporate Secretary of Fincanna Capital, Great Bear Resources and Kivalliq Energy, Director of Western Pacific Resources
Connor, Ben Business Management and Technical Consultant Bachelors Degree Senior Project Consultant at BTY Group
Groves, Brian Director Chairman, CEO and Director of Genesis Metals, Director of Kootenay Silver,
Past President and CEO of Spanish Mountain Gold
Clare, James Director BA, LLB Partner at Bennett Jones LLP, Director of PJX Resources, Solgold and Spanish Mountain Gold
Ellis, Clare Director B.Sci, MBA, P.Geo VP of Investment Banking PI Financial, Past Director of AME BC
Henry, Walter Director CFA, ICD.D ceo, President and Director of Platinex, Frontline Gold and Alturas Minerals and Director, Acting President and CEO of Alexandria Minerals

Share Structure as of February 28 2019

Basic: 45,174,313
Fully Diluted: 52,224,080
*Source - MD&A for year ended December 31 2018

Options Outstanding

Number Exercise Price Expiry Date
723,000 $0.27 November 14 2019
707,500 $0.15 January 7 2021
935,000 $0.42 December 16 2021
695,000 $0.28 November 3 2022
785,000 0.17 January 8 2024

*Source: MD&A for quarter ending December 31 2018

Warrants Outstanding

Number Exercise Price Expiry Date
3,130,183 $0.85 March 15 2019
74,584 $0.85 April 24 2019

*Source: Financial statement quarter ended December 31 2018

Insider Ownership

Name Common Shares
Clare, James 23,500
Dare, Jeff 500
Ellis, Clare 100,000
Scott, Rob 751,300
Smith, Freeman 50,000
Staude, John-Mark (Direct) 1,670,450
Staude, John-Mark (Indirect) 220,000

*Source - SEDI as of February 17 2019

Liquidity & Capital Resources

Source: Financial Statement quarter ended December 31 2018
Current Assets $3,305,327 CAD
Current Liabilities $91,544 CAD
Working Capital $3,213,783 CAD

Financing History/Prior Sales

Date Shares Warrants Full Warrant
Full Warrant
Free Trade
March 19 2019 17,488,875 common shares at $0.16 1 common share purchase warrant $0.22 24 months***** July 20 2019
March 19 2019 38,000 finders shares 1 common share purchase warrant $0.22 24 months***** July 20 2019
March 16 2017 6,257,367 common shares at $0.55 1/2 common share purchase warrant $0.85 24 months July 16 2017
March 4 2011 5,800,000 common shares at $0.95 1 common share purchase warrant $1.40/1.60* 24 months July 5 2011
March 4 2011 275,951 common shares (paid to broker) 1 common share purchase warrant $1.20 24 months July 5 2011
August 25 2010 2,416,667 common shares at $0.60** N/A N/A N/A December 24 2010
April 23 2009 3,771,500 common shares at $0.40 1 common share purchase warrant $0.65/$0.85*** 24 months
May 27 2008 1,250,000 common shares at $1.20**** N/A N/A N/A September 26 2008
February 15 2008 2,800,000 common shares at $0.90 1 common share purchase warrant $1.30 24 months***** June 14 2008
February 15 2008 118,500 common shares (paid to broker) 1 common share purchase warrant $1.30 24 months***** June 14 2008
August 27 2007 4,800,000 common shares at $0.50****** 1/2 common share purchase warrant $1.00 24 months

*Note: Warrant exercise price the first year $1.40, the second year $1.60. They are subject to an acceleration clause
**Note: PP with Cliffs Natural Resources Exploration
***Note: Warrant exercise price the first year $0.65, the second year $0.85
****Note: PP with Kinross
*****Note: Subject to and acceleration clause
******Note: IPO

Prior Sales - Founders Shares and Pre-IPO Private Placements

Date Shares
June 21 2007 93,981 units at $0.50 each unit comprising a Common share and one-half of a warrant (Private Placement)
April 16 2007 100,000 common shares at $0.20 (Copper Ridge property option payment)
March 30 2007 160,000 units at $0.25 each unit comprising a Common Share and a warrant (Private Placement)
March 13 2007 3,925,000 common shares at $0.20 (Private Placement)
February 15 2007 3,900,000 common shares at $0.001 (Founder Shares)
July 4 2006 1 common share at $1.00 (Incorporation)

*Source: Final Prospectus filed on SEDAR July 26 2007

Termination & Change of Control Payments

The company has no agreement or arrangement with any director, named executive officer or any other party with respect to any change of control of the Company or any severance, termination or constructive dismissal of any director, named executive officer or any other party, or any incremental payments triggered by any such change of control, severance, termination or constructive dismissal.

Source: Management Circular filed on SEDAR February 8 2019

Corporate Highlights

Cecilia Gold Project

The drill permitted Cecilia project is located 40 km southwest of the Mexico-U.S.A. border town of Agua Prieta in Sonora, Mexico and is easily accessed by paved highway and dirt roads. The project is 6,897 ha in size and is located 48 km from the world-class open-pit Cananea porphyry copper mine. Deposit analogs for Cecilia include the La Pitarrilla deposit containing 526 million oz Ag (Measured + Indicated, SSRI website) and Fresnillo’s San Julian silver mine containing over 230 million oz Ag, both located in Durango, Mexico.

See more here: https://www.rivres.com/projects/riverside-owned-projects/cecilia-gold-project

Peñoles Project

The Peñoles Project includes two historic silver mines (Jesus Maria and San Rafael), an oxide gold prospect (referred to as El Capitan) located in the historic Peñoles Mining District of Durango, Mexico. The Peñoles Project is host to multiple mineralized vein systems, fault zone structures, poly-metallic skarns, and silicified low-temperature gold-rich volcaniclastics. Approximately 86 diamond drill holes totalling more than 11,550 metres have now been completed at the Project. Drilling to date on the Peñoles property has defined significant intervals of near-surface silver mineralization (with associated gold, lead and zinc values) at Jesus Maria, and wide intervals of near-surface gold mineralization (with low silver values) at El Capitan that could potentially be amenable to open-pit extraction methods.

See more here: https://www.rivres.com/projects/riverside-owned-projects/penoles-gold-silver-project

Tajitos Gold Project

The 61 km² Tajitos Gold Project is located in the heart of the Sonora-Mojave Megashear Gold Belt. The Project was acquired by Riverside from a private owner and is owned 100% with no underlying royalties. Since acquiring the property, Riverside has completed multiple surface and underground sampling and mapping programs and has staked additional ground (Tejo & Cortez claims) to expand the land package. Previous partner Centerra Gold completed further geophysics and a first round of drilling that included 1,832 metres of core across 8 drill holes at Tajitos.

See more here: https://www.rivres.com/projects/riverside-owned-projects/tajitos-gold-project

Clemente Project

The Clemente Project is within close proximity to five gold-silver mines in the region, including the Cerro Colorado Mine only 7 km to the SE. Clemente is centered on the Sonora-Mojave Megashear, a controlling rich belt of orogenic and intrusion related gold and silver deposits approximately 700 km long. The Project has exceptional infrastructure with power, water and road access making the targets easily accessible and cost effective for future drill testing.

See more here: https://www.rivres.com/projects/riverside-owned-projects/clemente-gold-silver-project

Thor Copper Project

The Thor Copper Project is located within the Arizona - Sonora Copper Mining Belt, which is host to over 40 major Cu-Mo porphyry deposits, including in Mexico the world-class, Cananea and La Caridad copper mines currently being operated by Grupo Mexico. The Thor property was acquired for its extensive color and associated geochemical anomalies, interpreted by Riverside to represent the basal portions of an eroded porphyry-related lithocap making it the prime target for a new significant copper discovery. This part of Sonora is rich in copper potential and has had extensional tectonics that provide a potential for shallow, open pit discoveries under pediment that could possibly be unrecognized due to post-mineral faulting as Riverside’s President, John-Mark Staude, described in his 1995 PhD doctorate thesis on the mineralization in Sonora, Mexico.

See more here: https://www.rivres.com/projects/riverside-owned-projects/thor-copper-project

Ariel Copper-Gold Project

Riverside Resources won the right to stake the Ariel project through the claims lottery process and subsequently staked and acquired the project in northern Sonora, Mexico.
The Ariel Project is strategically located 30 km ESE of the world-class La Caridad Cu-Mo porphyry mine (1,800 Mt @ 0.45% Cu, 0.02% Mo), and 24 km SE of the Los Alisos Cu porphyry prospect. To the best of RRI’s knowledge, the area has not been drill tested previously and represents a new grass-roots target.
The Ariel property was staked by Riverside in late 2015 and developed out of a strong reconnaissance prospecting program in the area. Access to the Property is good with 30 km on dirt roads from paved highways where power grid and other infrastructure are in place servicing the nearby La Caridad mine.

See more here: https://www.rivres.com/projects/riverside-owned-projects/ariel-copper-gold-project

La Silla Gold-Silver Project

The La Silla epithermal Au-Ag project is similar to the San Dimas (Primero Mining Corp.) and El Gallo (McEwen Mining) vein systems being mined to the south and north of La Silla.  The project is located 60 kms northeast of Mazatlan with paved and dirt road access to the 20 km square property.  The project is located in the Ollitas Mining District, Municipality of San Ignacio, State of Sinaloa, Mexico.   The closest population and commercial center to the property is the town of San Ignacio, with good infrastructure.  From San Ignacio, which lies about 20 km north-northwest of the core of the property, the property’s main prospects are accessible by following a rough bush track to the southeast to the hamlet of La Morita and then north.

See more here: https://www.rivres.com/projects/partner-funded-projects/la-silla-gold-silver-project

Sugarloaf Peak Gold Project (Sold to Croesus Gold Corp)

Acquired in 2008, the Sugarloaf Peak Project has over 70 drill holes, deep IP (Titan-24 survey), aeromagnetics, and extensive mapping and sampling across the 24 km² property. The central target area includes a near surface, large low-grade gold system that could be related laterally or overtop of a porphyry copper system. Riverside completed exploration and drilling that was followed by $3M in exploration and geophysics work completed during 2011-2012 by a former partner. Croesus Gold Corp. has subsequently acquired a 100% interest by making staged cash and share payments to Riverside and will now carry the project forward.
Croesus Gold Corp. is a private company that plans to complete a go-public transaction in 2019. Riverside maintains solid exposure to partner or project success through its ownership of 3,000,000 Croesus shares and 2% NSR on the Sugarloaf Peak Project.

See more here: https://www.rivres.com/projects/partner-funded-projects/sugarloaf-peak-gold-project