Maurice Jackson: Joining us for a conversation is Dr. John-Mark Staude, president and CEO of Riverside Resources Inc. (RRI:TSX.V; RVSDF:OTCQB).
Riverside has entered into a strategic funding agreement with multi-billion dollar market cap, BHP Billiton Ltd. (BHP:NYSE; BHPLF:OTCPK). For those not familiar with the details of this agreement, please share them with us.
John-Mark S.: It's excellent. For Riverside, it provides at least two years and maybe more of full funding by BHP of over $1 million a year to generate new projects. Then, as we generate new projects, every additional project we do gets a half-a-million-dollar technical work program as well. On top of that, it's over $5 million of spending by BHP for them to earn into a 70% interest. So what we're doing is we're allowing for BHP to earn into projects, but what's really great for Riverside is we have that funding to go forward and explore in Sonora, Mexico. It's a real win-win type of strategic program we're doing with BHP.
Maurice Jackson: Sticking with BHP, are there any updates that you can provide for shareholders since the signing of this agreement?
John-Mark S.: The Strategic Funding Agreement is focused in Sonora, Mexico. The area of focus is in orange on the map above, called the Laramide. The Laramide rocks are the right age rocks for copper. These are some of the centralized areas that have copper mining, big mines, and copper operations. What we've been doing in the last six months is developing our own projects along the following belts: the Cananea, Caridal Suaqui Verde, Suaqui Grande, other areas. We've now been able to update the shareholders that Riverside has been able to get targets going forward. We're excited to be working in these mineralized areas and finding new targets that we will be able to, in the next six months, have news flow from the acquisition, and then further follow up towards drilling of these different targets for copper. We really like this region and we're very excited to have BHP funding our program here.
Maurice Jackson: Looking forward, John-Mark, what is the next unanswered question that Riverside Resources will be answering for the market regarding its work with BHP? And you alluded to six months is the next time we should hear a response, but what will determine success?
John-Mark S.: So first off, we will hear, even before six months, the new acquisition of properties. News releases about that are pending. Secondly, high-value work programs. Those are those $500,000 additional funding programs that we're doing with BHP. In the next three months, we expect to have a couple of those coming forward. So that's good.
What will be success? First, is BHP funding it, and secondly, will be the results coming out of that. We know this is a prolific belt. In particular in the region near Arizona, there are over 17 major copper mines. Yet, in Mexico, there are only six. We think this shows a great potential for finding of more. So what will be successful will be us acquiring properties, us moving those forward, and eventually with us drilling. Drill discoveries, we've heard about them just up here in the north with big transactions and big deals out of Tucson, Arizona, which just to the north of us, really leaves us feeling that there's a great potential here in Sonora, Mexico. So we're delighted now to be moving forward with those different target areas with BHP.
Maurice Jackson: Moving on to the remaining project portfolio, the property bank has expanded quite considerably this year. Please provide an overview of the property acquisitions for this year.
John-Mark S.: Riverside has been quite active this year. We have expanded our property bank in Mexico and Canada. Beginning with Mexico is the Cecilia Project; we also added have Los Cuarentas. And what we have in these projects in this area of Sonora is gold near the surface, very good. One of the things we've had in news flow at Los Cuarentas was the fact that we'd had the work next to us, Santa Gertrudis Mine, Premier Gold Mines, Santa Elena, the development of that by First Majestic, and even the Silver Crest. So right in the middle of the map is where Riverside's been able to go and is diversifying our portfolio, so we're very excited by that. Surrounded by other projects as well. Makes the Sonora State great for Riverside.
Maurice Jackson: John-Mark, take us to Canada and share with us the project portfolio expansion there.
John-Mark S.: Riverside during this year has been expanding into Canada. We've been working in the province of Ontario because it's one of the major gold-producing provinces in the country of Canada. Ontario produces over 43% of all the gold in Canada. The gold deposits come from a belt, which is sheer-zone gold, as we have at our Oakes Project and further to the west at our Longrose Project. Both of these are part of the Geraldton Beardmore gold belt.
This is a prolific gold belt with over 8 million ounces of resources and past production. And we see good potential at Oakes. We'll have news flow coming in the next three months from Oakes, from the sampling and field work, and also with Longrose, where we have shear-zone gold near to the old Beardmore mine. Beardmore mine produced over a million ounces at one ounce per ton, a nice high-grade operation at Beardmore. So we like these high-grade near-surface gold projects; they are excellent additions for Riverside's portfolio.
Maurice Jackson: Dr. Staude, when can shareholders expect to hear the next press release regarding one or more of the aforementioned projects?
John-Mark S.: In the next four weeks, we'll actually have news. We're working on getting the final results put together, and we'll look forward to keeping the updating of the shareholders. Very excited about us moving into November. It'll be a really good time with news flow from Riverside.
Maurice Jackson: Switching gears, John-Mark, please share the current capital structure of Riverside Resources.
John-Mark S.: Riverside continues to have a tight share structure with 63 million shares out, a good cash position of over $2.5 million cash, and no debt. Additionally, our $1 million a year coming in from BHP helps us to keep that burn rate low as we continue to grow the portfolio and work with joint venture partners.
Maurice Jackson: Sir, when was the last time you purchased shares, and at what price?
John-Mark S.: Actually, I'm purchasing shares right now at 15 cents. It's a low price for us, and so I'm delighted to be able to pick up shares here. It's a wonderful time. And with the news out, I can do that now. We've been in a bit of a hold period with this news, wanted to get it out. And now we can buy more shares of Riverside.
Maurice Jackson: In closing, sir, what keeps you up at night that we don't know about?
John-Mark S.: Really the speed. Riverside wants to get news out there and we're pushing hard. Also, the access to capital for partners. It's just really difficult right now for other people. Riverside's in a good position with cash, good position with no debt, but other companies. Those are the two things that we're working very hard at ourselves, to get partners funding and move things ahead quickly. We really want to make a great discovery for Riverside shareholders.
Maurice Jackson: Finally, what did I forget to ask?
John-Mark S.: Besides the news flow, what also is next is continuing to grow in Canada. We like Canada. We want to expand in Canada. So we're excited to do that diversification beyond Mexico, where we're very strong, but Canada's wide open for us as well.
Maurice Jackson: Dr. Staude, for someone listening that wants to get more information on Riverside Resources, please share the contact details.
John-Mark S.: Please call us at 778-327-6671, or come to the website at rivres.com.
Maurice Jackson: And as a reminder, Riverside Resources trades on the TSX.V: RRI |OTCQB: RVSDF. Before you make your next bullion purchase, be sure you call me. I'm a licensed representative for Miles Franklin Precious Metals Investments, where we provide a number of options to expand your precious metals portfolio, from physical delivery, offshore depositories, precious metal IRAs, and private blockchain-distributed ledger technology. Call me directly at 855-505-1900 or you may email [email protected].
Finally, we invite you to visit provenandprobable.com, where we provide Mining Insights and Bullion Sales. Riverside Resources is a sponsor of Proven and Probable, and we are proud shareholders of Riverside Resources for the virtues conveyed in today's message.
Dr. John-Mark Staude, thank you for joining us today on Proven and Probable.
Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.
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