Arcus Development options Chapalota from Riverside
2008-04-14 06:17 MT - News Release
Mr. Ian Talbot reports
ARCUS DEVELOPMENT GROUP OPTIONS CHAPALOTA GOLD PROSPECT FROM RIVERSIDE RESOURCES
Subject to TSX Venture Exchange acceptance, Riverside Resources Inc. has granted Arcus Development Group Inc. an option to acquire up to a 65-per-cent interest in the Chapalota gold prospect, located in southern Sinaloa, Mexico, near Geoinformatics's La Noria project and south of US Gold's Magistral mine. The Chapalota property was acquired by Riverside through staking and is wholly owned by Riverside.
To exercise an initial option and acquire a 51-per-cent interest in the Chapalota property, Arcus is required to pay Riverside $300,000 cash, issue 350,000 Arcus shares to Riverside and incur exploration expenditures of $4-million prior to the fourth anniversary of the option agreement. Exploration expenditures in year one of the initial option include a firm commitment of $350,000. After exercising the initial option, Arcus will have a second option to acquire an additional 14-per-cent interest in the property by incurring a further $2.5-million in exploration expenditures within a two-year period and by paying Riverside $500,000.
The Chapalota property is not subject to any underlying royalty interests and no finder's fee will be paid in connection with the Arcus option.
Eric Tweedie, the Arcus vice-president of exploration, stated: "The Chapalota property represents an excellent exploration opportunity for Arcus based on the geological setting and past gold production in the region. Riverside's team has done a very good job of identifying high-quality precious metals prospects in areas that have not been extensively explored in the past."
AI
