Northern Lights Resources (NLR.C), a Canadian mineral explorer focused on the acquisition and exploration of gold and silver assets in North America, announced today that it had successfully completed the sale of its 25% interest in the Medicine Springs Project Option Agreement to Reyna Silver.
The terms as announced on December 15, 2022, called for a combination of $100,000 USD cash, 6.0 million shares in Reyna and a 1% NSR Royalty over the Medicine Project, which 0.5% can purchased back by Reyna for $2.5 million.
Jason Bahnsen, Northern Lights CEO, commented, “The completion of the sale of NLR’s 25% stake in the Medicine Springs Project option positions NLR to focus on the exploration of the Secret Pass Gold Project in Arizona as well the review of new potential project acquisition opportunities. We believe the Medicine Springs Project has the potential to develop into a district-level silver and base metals project under the management of the Reyna Silver team with the guidance of CRD expert geologist Dr. Peter Megaw. Northern Lights retains significant exposure to the Medicine Springs Project as well as Reyna Silver’s Guigui and Batopilas projects in Mexico via the Reyna Silver 5% equity position and the future NSR royalty on Medicine Springs.”
Medicine Springs is located in Elko County, Nevada. It is an advanced silver-zinc-lead exploration project with extensive historical exploration data. This historical exploration has identified a mineralized footprint that extends 3.4 kilometres in strike and approximately up to 1.4 kilometres in width.
Six key target areas were identified in 2018, among them is the Hermosa/Taylor deposit, developed by Arizona Mining prior to the acquisition by South32 in 2018. Hermosa/Taylor is a carbonate replacement high grade zinc deposit (101 million tonnes M&I resources @ 10.4% Zn equivalent).
In recent news, the company announced at the beginning of December that it had issued 2.68 million shares in Northern Lights to Mirabel Capital for consideration of approximately $40,200 CAD.
The shares were issued under the terms of the Convertible Security Agreement which was detailed in a May 2021 news release.
Currently Northern Lights Resources trades at $0.025 per share for a market cap of $0.5 million.
