Riverside Resources Options Cecilia Project, Sonora, Mexico to Calu
Riverside advances its Mexican portfolio through a partner-funded option on the Cecilia deposit, retaining royalty and fee interests.
Ravena Resources Corp., a subsidiary of Riverside Resources Inc., has entered into an option agreement with Calu Resources Corp. for the Cecilia Project in Sonora, Mexico. Under the terms of the deal, Calu can earn a 100% interest in the project by paying C$1,200,000 in cash or shares and completing C$6,650,000 in exploration expenditures over a five-year period.
Ravena will serve as the exploration operator, earning a 10% management fee on eligible expenditures. Riverside and Ravena retain an existing 2.0% net smelter return (NSR) royalty and will receive an additional 0.5% NSR upon exercise of the option. Calu has the right to buy back this additional 0.5% NSR for US$1,500,000 before January 1, 2035.
The announcement also includes a routine administrative grant of 1,650,000 incentive stock options to directors, officers, and employees. These options carry an exercise price of $0.41 and expire on September 4, 2031.
Riverside Resources Inc. (RRI) has structured the transaction to align with its established project generator and royalty model, which involves advancing assets through partner funding while retaining equity and royalty exposure. This approach allows the company to spin out or option properties to de-risk them without incurring a capital burden. The agreement includes a C$6.65M exploration commitment, providing a clear funding path for the Cecilia project, which previously faced a setback when partner Fortuna Mining withdrew. The new structure ensures the technical advancement of the asset continues.
Additionally, a 10% management fee provides immediate, low-risk cash flow to Ravena, helping to offset administrative and operational costs. The royalty structure, consisting of a 2.0% existing royalty plus a 0.5% new royalty, preserves long-term upside if a discovery is made, while a buyback option offers Calu flexibility to clean up the title later. The stock option grant is described as standard administrative compensation and does not materially impact the capital structure or dilution profile. Overall, the deal represents a predictable, incremental step in the Ravena spin-out strategy, reflecting steady execution of the corporate model rather than a sudden valuation inflection.
Riverside Resources Inc. (RRI) operates as a 19-year discovery incubator and project generator, focusing on gold, silver, copper, and rare earth elements in Canada and Mexico. Its flagship asset is the Union Project in Sonora, Mexico, a district-scale carbonate replacement deposit (CRD) gold-silver system. Phase 2 drilling is currently underway at Union, funded by partner Questcorp, targeting CRD and sediment-hosted gold mineralization.
The company’s other key assets include the Cecilia and Ariel projects in Sonora, Mexico, with Ariel being a porphyry copper deposit; the Revel (rare earth elements), Red Jacket (VMS), and Deer Park (gold) projects in British Columbia; and a royalty portfolio. The royalty holdings include a 2% NSR on Tajitos (Fresnillo), a 2% NSR on Sugarloaf Peak (Arizona Metals), a 1% NSR on Capitan Silver's Cruz de Plata, and a 2% NSR on Blue Jay Gold properties. All royalties carry no capital requirements to Riverside.