Northern Lights Resources (NLR.C), a Vancouver, British Columbia-based mineral junior focused on the exploration and development of high-quality assets in mining friendly jurisdictions, announced entering into an agreement for the sales of 25% interest in the Medicine Springs Project to Reyna Silver for approximately $2.2 million.
Reyna Silver will acquire NLR’s 25% interest in the Medicine Springs Project in return for consideration of $100,000 cash USD and 6.0 million shares of Reyna Silver Corp at a deemed price of $0.35 per share for a total market value of $2.1 million.
The agreement also calls for a NSR Royalty of 1% over the Medicine Project. Northern Lights Resources is to receive consideration within three days of TSX.V and other required approvals for the Transaction being received.
Jason Bahnsen, Northern Lights CEO, commented, “The sale of our interest in Medicine Springs allows NLR to monetize value for the project now while retaining exposure to exploration upside with a 5% equity stake in Reyna Silver and a royalty over the project. We look forward to following the development of Medicine Springs.”
The Medicine Springs Project is comprised of 4,381 hectares of mineral claims located in Elko County Nevada. The project is prospective to host a large-scale carbonate replacement deposit (CRD) containing silver, zinc and lead mineralization.
Northern Lights entered into an option agreement to acquire 100% of the Medicine Springs Project in 2017 as outlined in the August 20, 2017 press release.
The company completed geophysical and soil sampling programs from 2017 to 2019 identifying a strong NE-trending Pb-Zn-Ag soil anomaly with > 2000 metres in length with widths ranging 350-500 metres.
Reyna Silver entered into an agreement with Northern Lights in October 2020 whereby Reyna Silver had the ability to earn up to 75% interest with an option to acquire an additional 5% in the Medicine Springs Project. This earn-in was based on the completion of minimum exploration work of $2.4 million USD plus other cash payments.
A further sampling program in 2021 at Medicine Springs Project carried out by Reyna Silver revealed a classic CRD silver-lead-zinc-copper zonation and outlined NE-SW trending structures.
Reyna Silver commenced an initial 5,000 metre exploration drill program at Medicine Springs (assay pending). The drilling program is targeting four key areas with the aim to define high-grade carbonate replacement deposit (CRD) sulfide mineralization at depth.
