Riverstone Resources Inc.

Riverstone Resources Inc.

October 26, 2011 09:18 ET

Riverstone Completes Sale of Remaining Interest in Yaramoko, Solna and Bissa West Projects; Acquires 19% Interest in Roxgold Inc.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 26, 2011) - Riverstone Resources Inc. (TSX VENTURE:RVS)(OTCQX:RVREF)(FRANKFURT:3RV) ("Riverstone" or the "Company") is pleased to announce the closing of the sale of its remaining interests in the Yaramoko, Bissa West and Solna projects in Burkina Faso, West Africa to Roxgold Inc. ("Roxgold").

Riverstone received consideration having an aggregate value of approximately $36 million, comprising $17 million in cash and 16 million Roxgold common shares having a value of approximately $19 million based on the closing price of Roxgold common shares on October 25, 2011. Riverstone now owns 16,980,000 Roxgold shares representing approximately 19% of the issued and outstanding voting securities of Roxgold, on a non-diluted basis. Additional details of the transaction and the consideration are contained in the Company's news release dated September 21, 2011.

"This is an excellent deal for both companies," commented M.D. McInnis, Chairman and CEO of Riverstone. "We have monetized our direct interest in the properties, but will participate in the value creation potential through our 19% equity interest in Roxgold. We look forward to working with Roxgold to unlock that potential."

Dwayne L. Melrose, President and COO of Riverstone commented, "The $17 million cash portion received by Riverstone places us in a strong financial position to continue to advance our West African strategy with an immediate focus on growing and developing our flagship Karma asset. We have five drill rigs under contract and we plan to aggressively move Karma forward on a development path."

Riverstone is active in gold exploration in Burkina Faso, West Africa. The Company's most advanced project is Karma, which comprises a NI 43-101 compliant gold resource of 810,600 ounces of gold in 22,845,000 tonnes grading 1.10 g/t gold in the indicated category and 1,119,100 ounces of gold in 44,100,000 tonnes grading 0.79 g/t gold in the inferred category. (See news release dated February 28, 2011). Since the resource was calculated in February 2011, the Company has drilled in excess of 40,000 additional metres, and it is expected that the result of this drilling will add significantly to the resource.

For further information about the company and its activities, please refer to the Company's website at www.riverstoneresources.com and under the Company's profile at www.sedar.com.


Michael D. McInnis, P. Eng., Chairman & CEO

This news release contains forward-looking statements regarding the Company's development of its Karma project. These statements are based on information currently available to Riverstone and there is no assurance that actual events or results will meet the expectations as expressed herein. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, project development, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; delays in obtaining approvals, litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by it or on its behalf, except in accordance with applicable securities laws.

This news release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources and reserves, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.

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.

Contact Information

  • Riverstone Resources Inc. - Vancouver Office
    Dwayne L. Melrose

    Riverstone Resources Inc.
    Raju Wani
    Investor Relations

    Riverstone Resources Inc.
    Ron Cooper
    Investor Relations

    Riverstone Resources Inc.
    Don Mosher
    Corporate Development