I just had a call with my friend John-Mark Staude, CEO of Riverside Resources (TSXV:RRI).
John-Mark is such an enthusiastic, fun and positive guy and we laughed about the state of the markets while promoting each other on our latest endeavours.
Riverside, for those unaware, has a pretty genius business model for a junior mining company. For every $7 spent in exploration by Riverside this year, only $1 will come from their coffers, with the rest coming from partners, including Hochschild, Antofagasta and others.
John-Mark is pumped about the Peñoles project in Mexico and tells me that he's enjoying to help identify drill targets at that property.
"It's great to go and talk to investors and all that, but it's fun to get to play geologist a bit," he said.
Riverside will spend $750,000 in the first 4 months of the year at Peñoles. Riverside owns 100% of the project, but partner Morro Bay can pay $1.35 million cash and $1.5 million worth of shares in their company to earn 51%.
In a press release out today, Riverside took a big payday today in shares of Morro Bay. Read: Riverside Receives Shares, Warrants and $750,000 Drilling and Exploration Commitment From Morro Bay Resources.
John-Mark is also excited about Bohemia and other new projects coming online in Sonora, Mexico, which are part of Riverside's alliance with Hochschild. Riverside has $1.25 million for exploration in the region, however John-Mark isn't sure he will spend all of it on drilling; he thinks there may be even better assets out there that he can get his hands on.
"This is the best time of my career so far where I've got the strong support of shareholders, some capital ($5 million), and a chance with partners like Hochschild and Antofagasta to go after other targets."
Riverside has been very conservative with its cash and its share structure. The company has roughly 37 million shares out, which gives RRI a market cap of roughly $16 million, an an enterprise value of $11 million.
Should the company make a discovery at one of its partner funded projects, investors in RRI will benefit from that tight structure.
The consummate promoter/geologist, John-Mark talked about conserving cash and dropping some expensive commitments during this difficult mining finance environment. "We pruned hard as a good gardner would do in the wintertime, so when the spring comes, we will grow very strong."
Here's the RRI chart:
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