Riverside Resources teams up with Antofagasta for copper exploration in BC

Mineral explorer Riverside Resources (CVE:RRI) said today that it has signed a three-year strategic partnership with Antofagasta Minerals to explore throughout the main copper belts of British Columbia, in a deal worth C$1.8 million.

Antofagasta Minerals, a subsidiary of Antofagasta Plc (LON:ANTO), said it will pay $600,000 in funding the exploration each year.

The alliance, which plans to use Riverside’s expertise in copper systems and generative fieldwork to mark out prospective targets, will focus on identifying big copper deposits.

In the event properties are identified and deemed to be a "designated" project of interest, Antofagasta can earn a 65% stake by completing a four-year $5 million work program, with a minimum of $1 million in work expenditures in the first year.

If Antofagasta fails to meet this benchmark, Riverside can acquire 100% of the designated project, the company said.

After Antofagasta’s earn-in is finalized, Antofagasta will pay Riverside $3.0 million and the respective designated property will be advanced under a joint venture agreement, with Antofagasta holding a 51% stake, and Riverside retaining the remainder.

In the event Riverside’s stake in the “designated project” reduces to 10% or less, this interest will be converted to a 2% net smelter royalty.

"This alliance is a very significant step for Riverside,” said chief executive, John-Mark Staude.

"Finalizing an exploration agreement with Antofagasta allows Riverside to build and further diversify its portfolio geographically by sustainably entering into Canadian exploration.

"By combining Riverside's prospect generation and exploration skill with Antofagasta's capital and operating experience, this partnership has the potential to add significant value to both organizations."

Riverside, which will be the operator for all exploration activities, will make all decisions jointly with Antofagasta through a technical committee consisting of two representatives from each company.

Vancouver, B.C.-based Riverside has properties in Mexico and the United States. Currently, the company is jointly advancing eight gold and silver projects with partners, and operating a $1.5 million exploration alliance with Cliffs Natural Resources.