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Northern Lights Resources Completes Sale of Option Interest in Medicine Springs Project
Vancouver, British Columbia – TheNewswire - December 23, 2022 - Northern Lights Resources Corp. (“Northern Lights” or the “Company”) (CSE:NLR), (OTC:NLRCF) is p
About this update from Northern Lights Resources Corp
[{"type":"text","content":"Vancouver, British Columbia – TheNewswire - December 23, 2022 - Northern Lights Resources Corp. (“Northern Lights” or the “Company”) (CSE:NLR), (OTC:NLRCF) is pleased to announce that it has completed the sale of its 25% interest in the Medicine Springs Project Option Agreement to Reyna Silver Corp. (TSX.V RSLV) under the terms announced by the Company on December 15, 2022 (the “Transaction”). Highlights The total value of the consideration paid to NLR for its 25% option interest in the Medicine Springs Project is approximately $2.3 million plus the value of the future NSR royalty interest. Consideration received by NLR from Reyna Silver consists of: US$100,000 Cash Payment 6,000,000 shares of Reyna Silver Corp (as at Dec 22, 2022 - share price $0.365, total market value $2.19 million) 1% NSR Royalty over Medicine Project (option for RYSL to buy back 0.5% for US$2.5 million) Northern Lights CEO, Jason Bahnsen 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.” The Transaction Under the terms of the Transaction, Northern Lights will assign all of its rights and obligations under the Medicine Springs Option Agreement to Reyna Silver. Upon completion of the Transaction, Reyna Silver will have the option to acquire 100% of the Medicine Springs Project by completing the minimum exploration expenditure as per the Medicine Springs Option Agreement. Reyna Silver will be responsible for all obligations under the Medicine Springs Option Agreement including any consideration payments due to the project vendors from Nothern Lights under the terms of the Medicine Springs Option Agreement. In consideration for the purchase of NLR’s ...