Business
Northern Lights Resources Announces Sale of Interest in Medicine Springs Project for $2.2 Million
Vancouver, British Columbia – TheNewswire - December 15, 2022, Northern Lights Resources Corp. (“Northern Lights” or the “Company”) (CSE: NLR, OTC: NLRCF) is pl
About this update from Northern Lights Resources Corp
[{"type":"text","content":"Vancouver, British Columbia – TheNewswire - December 15, 2022, Northern Lights Resources Corp. (“Northern Lights” or the “Company”) (CSE: NLR, OTC: NLRCF) is pleased to announce that it has entered into an Agreement, dated December 14, 2022 to sell its 25% interest in the Medicine Springs Project to Reyna Silver Corp. (TSX.V RSLV) for approximately $2,200,000 (the “Transaction”). Highlights Reyna Silver will acquire NLR’s 25% interest in the Medicine Springs Project in return for consideration of: US$100,000 Cash Payment 6,000,000 shares of Reyna Silver Corp (as at Dec 14, 2022 - share price $0.35, total market value $2.1 million) 1% NSR Royalty over Medicine Project NLR is to receive all consideration within 3 days of TSX.V and other required approvals for the Transaction being received. Northern Lights CEO, Jason Bahnsen 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.” Medicine Springs Project The Medicine Springs Project consists of 4,381 hectares of mineral claims located in Elko County Nevada (Figure 1). Medicine Springs is prospective to host a large-scale carbonate replacement deposit (CRD) containing silver, zinc and lead mineralization. In 2017, Northern Lights entered into the Medicine Springs Option Agreement to acquire 100% of the Medicine Springs Project (see NLR announcement of August 20, 2017). From 2017 to 2019, Northern Lights completed geophysical and soil sampling programs resulting in the identification of a strong NE-trending Pb-Zn-Ag soil anomaly with >2000 meters in length with widths ranging 350-500 meters. In October 2020, Northern Lights entered into an agreement with Reyna Silver whereby Reyna Silver can earn up to a 75% interest (with an option to acquire an additional 5%) in the Medicine Springs Project, through the completion of minimum exploration work of US$2.4m plus other cash payments (See NLR announcement of October 5, 2020). Reyna Silver completed a further sampling program at the Medicine Springs Project in 2021 with results revealing a classic CRD Silver-Lead-Zinc-Copper zonation and outlining of NE-SW trending structures. In S...