Riverstone Acquires Outstanding Interest in Liguidi Property
Riverstone Resources Inc. (TSX-V; RVS) ("Riverstone" or the "Company") reports that the Company has reached an agreement (the "Agreement") with Orex Ressources S.A.R.L. ("Orex") to acquire Orex's 14% non-participating interest (the "Interest") in the Liguidi Malguem exploration permit (the "Liguidi EP") (the "Transaction"), representing all of Orex's remaining interest in the Liguidi EP and area pertaining thereto (the "Property").
As previously disclosed (See Company's news release dated November 28, 2011), pursuant to a November 24, 2011, memorandum of agreement between the Company and Orex regarding the transfer of the Liguidi EP, in the event a mining permit was issued in respect of the Property, Orex retained a 14% non-participating interest (the "Interest"). The Interest was applicable in relation to any future Burkina Faso mining company formed for the purpose of gold production from the Property pursuant to a mining permit, whereby the direct or indirect interest in any such mining company so created would have been be allocated as follows: Riverstone: 76% (participatory), Orex: 14% (non-participatory), Government of Burkina Faso 10% (free-carried). On completion of the Interest acquisition, Riverstone's indirect interest in any such mining company so created will be 90% (participatory), with the Government of Burkina Faso retaining a statutory 10% (free-carried) interest.
Pursuant to the terms of the Transaction, Riverstone will initially pay Orex $400,000 cash and issue to Orex 100,000 common shares in the capital of Riverstone ("Common Shares") upon the conclusion of the Agreement. Additionally, Riverstone will, (a) upon receipt by Riverstone of a 3-year extension of the Liguidi EP, pay Orex $100,000 cash and issue to Orex 100,000 Common Shares and (b) within 60 days following the date of first commercial production (as defined in the Agreement) pay to Orex $500,000 cash, and issue to Orex an additional 100,000 Common Shares.
The Transaction remains subject to TSX Venture Exchange acceptance.
The Property occurs in highly prospective Birimian Greenstone Belts (see Map on the Company website illustrating the geographical location of the Property).
Previous work on the Property delineated a strong gold in soil anomaly of greater than 100 ppb gold, over a 13 kilometre strike length, which is up to 4 kilometres wide. The anomaly follows a pronounced regional shear zone at the contact between volcanic and sedimentary rocks, and represents one of the largest and strongest continuously mineralized gold anomalies in the country. The anomaly is open along strike to the southwest (see Map on the Company website for the soil anomaly of Liguidi EP).
Within the soil anomaly are numerous historic artisanal gold sites, namely Wayalguin, Three Hills, and Legare's Zone. The first two artisanal sites occur in volcano-sediments flanking a large dioritic intrusion which was tested with limited trenching and RC drilling by the Company in 2005. Significant results include 0.63 g/t gold over the entire 111 metre length of trench LM-TR-04, including 18 metres of 1.45 g/t gold and 18 metres of 1.53 g/t gold. Follow up drill results included 16.5 metres of 1.25 g/t gold, including 9 metres of 1.88 g/t gold in Hole LM-05-05 (see Company news releases dated April 26, 2005 and October 11, 2005).
Riverstone is active in Burkina Faso, West Africa, where it holds a portfolio of four high quality exploration projects covering in excess of 2,000 square kilometres. The Company's flagship project is the Karma Gold Project (the "Karma Project"), which comprises a NI 43-101 compliant in-pit Whittle indicated resource of 1.6 million ounces of gold in 47.3 million tonnes grading 1.1 g/t gold and an inferred resource of 0.6 million ounces of gold in 18.9 million tonnes grading 0.93 g/t gold (see Company's news release dated January 9, 2012 and NI 43-101 Technical Report titled, "Technical Report and Resource Estimate on the Karma Project, Burkina Faso, West Africa" filed on SEDAR (www.sedar.com) February 23, 2012). Since the data cut-off for the resource estimation, the Company has completed in excess of an additional 85,000 metres of drilling on the Karma Project, and it is expected that the results of this drilling will add to the overall resource of the Karma Project deposits. The results of a Preliminary Economic Assessment have recently been released (see Company news release dated August 20, 2012 and NI 43-101 Technical Report titled, "Preliminary Economic Assessment Report for the Karma Project, Burkina Faso, West Africa", with an effective date of August 2, 2012, filed on SEDAR (www.sedar.com) September 17, 2012), highlighting the Karma Project to be a robust project, and a new resource estimate is expected to be released this quarter.
ON BEHALF OF THE BOARD
"Dwayne L. Melrose"
Dwayne L. Melrose, President & CEO
For further information contact:
Dwayne L. Melrose 604-801-5020
Don Mosher, Corporate Development 604-685-6465
Raju Wani, Investor Relations 403-240-0555
Ron Cooper, Investor Relations 604-986-0112
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Paul G. Anderson, M.Sc., P. Geo., the Company's Vice-President, Exploration, is the Company's Qualified Person for the purposes of National Instrument 43-101 and has reviewed and approved the technical contents of this release.
Certain statements made and information contained in this news release and elsewhere constitutes "forward-looking information" within the meaning of Canadian securities legislation. Forward-looking statements are based on certain assumptions and are subject to risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, with respect to statements regarding the updated resources estimate, the assumptions set forth in this news release and in the Company's news release of January 9, 2012, August 20, 2012 and risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development results will not be consistent with the Company's expectations, accidents, equipment breakdowns, risk of undiscovered, title defects and surface access, labour disputes, the potential for delays in exploration and permitting activities, the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, political risk and other risks and uncertainties, including those described under Risk Factors in each management discussion and analysis and in the Company's annual information form which are available under the Company's profile at www.sedar.com. Forward-looking information is based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of gold, that the Company will receive required permits and access to surface rights, that the Company can access financing, appropriate equipment and sufficient labour and that the political environment within Burkina Faso will continue to support the development of environmentally safe mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements.
This news release may use the terms "measured", "indicated" and "inferred" as these terms are defined under Canada's National Instrument 43.101. U.S. Investors are advised that, while such terms are recognized and required by Canadian regulations, they are not recognized by the United States Securities and Exchange Commission ("SEC") and may not be comparable to similar information for United States mining or exploration companies. As such, certain information contained on this news release concerning descriptions of mineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the SEC. U.S. investors are cautioned not to assume that any part or all of the mineral deposits described in these categories will ever be converted into proven or probable reserves, as defined in the SEC's Industry Guide No. 7.