Riverside Resources (TSXV: RRI) is building its war chest this morning follow the sale of its Tajitos Gold Project, which is located in Sonora, Mexico. The asset has been sold to Minera Fresnillo, a subsidiary of Fresnillo PLC.
The sale will see Riverside collect US$2.5 million in cash, while also retaining a 2.0% NSR royalty on the property. The project consists of 45 square kilometres of prospective ground, next to Fresnillo’s property, which is also called Tajitos, and is under 30 kilometres away from the firms Noche Buena mining operations.
As part of the transaction, Fresnillo will have the option to buyback half of the NSR for US$1.5 million for a four year period. If exercised, Fresnillo will then receive a three year option to purchase the remaining NSR for another US$1.5 million.
“This transaction adds another quality NSR to our growing royalty portfolio and brings our cash position to more than C$8,000,000, which puts us in a great position to grow our business during 2023-2024. We are pleased to deliver another deal with a high caliber international mining company, which is a testament to the quality of projects our team has generated and Riverside maintains in our property portfolio,” commented Riverside CEO John-Mark Staude.
Riverside Resources last traded at $0.125 on the TSX Venture.
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