Riverside Resources Inc., a mineral exploration company based in Vancouver, British Columbia, said recently it amended its agreement with the privately owned Croesus Gold Corp. regarding the 9.2-square-mile Sugarloaf Peak gold project mining operation in La Paz County, Arizona.
According to the agreement, additional share payments would be due to Riverside if Croesus fails to complete a public listing within 18 months of the amendment date. With the current resolution, issuance of shares will not be required if Croesus has completed all required cash payments within 12 months of the amendment.
"We are pleased to reach a win-win amendment with Croesus,” Riverside Resources President and CEO John-Mark Staude said. “Riverside's cash position has increased to well over $3.5 million and the revised deal fits Riverside's business approach of partnering on properties while maintaining a royalty and major equity position in its partner companies. Riverside and its shareholders have solid upside exposure on future project or partner success with limited downside risk."
Both parties have agreed to a minimum value for Riverside's common shares in Croesus upon the public listing date. Additionally, if Croesus should sell or otherwise transfer the project to a third party within 30 months, Croesus would pay a percentage of its proceeds to Riverside.