NLRCF - NLR Announces Amendment to Debt Agreement with Mirabel Capital and Provides Project Update
(TheNewswire)
Vancouver, BritishColumbia – TheNewswire - February 27,2024 - Northern Lights Resources Corp. (“Northern Lights” or the “Company”)(CSE:NLR ) , ( OTC:NLRCF) is pleased to announce anamendment to the debt agreement with Mirabel Capital Ltd (the“Investor”) and provides an update on its current portfolio ofexploration projects.
Amendment to Debt Agreements
As announced by the Company on January 15, 2024, as ofthat date, Northern Lights had approximately US$229,825 (Correction toUS$237,504 amount stated in the Company’s January 15, 2024announcement) of debt payable to the Investor, in cash, on or beforeFebruary 23, 2024. The amended terms were memorialised in anamendment, dated April 27, 2023 (the “First Amendment”), to theinitial Security Purchase Agreement that the Company entered into withthe Investor on May 27, 2021 (the “Agreement”).
The inability of the Company to make the lump sum cashpayment of US$229,825 by February 23, 2024, triggered a defaultinterest provision totalling US$55,677 under the terms of the FirstAmendment and the underlying Agreement.
The Company has negotiated and entered into anagreement amendment (the “Second Amendment”) dated February 23,2024. Under the terms of the Second Amendment the Company must make alump sum cash payment of US$285,502 on or before the Company amendedagreement the Company entered into with the Investor on February 23,2025. No further interest is payable if the Company pays theoutstanding debt owing by February 23, 2025.
Please see the Northern Lights profile on SEDAR+( SEDAR+ NLR )for further details of the Company’s debt agreements with MirabelCapital Ltd.
Project Update
The Company would also like to announce that it iscurrently reviewing new exploration properties to add to its projectportfolio which currently includes the fully permitted, 100% owned andexploration-ready Secret Pass Project located in Arizona and its 1%NSR royalty exposure to the Medicine Springs Project inNevada.
a) Secret Pass Project
The Secret Pass Project includes the Tin Cup Prospectand the FM Zone Prospect.
In 2021, Northern Lights completed a 610-metre drillprogram at the Tin Cup Prospect that included 4 diamond drill holes.The assay results from the initial Tin Cup drill program showed thepresence of significant gold mineralization with assays up to 29.9 g/tgold. See NLR announcement of March 7, 2022, for further information( NLR Tin Cup Drilling Results March 7,2022) ).
Following on from the success of the initial four holescompleted at Tin Cup, Northern Lights is planning to restartexploration at Secret Pass including:
- A deep penetrating Induced Polarization (IP) Surveyover the area between the Tin Cup and FM zones. The FM Zone is locatedapproximately 1 km east of the Tin Cup prospect. The IP survey willexplore depths of ~400 metres and will assist in further defining thedrill targets associated with zones of high chargeability locatedalong strike and to depth over the identifiedsoil anomaly zone between Tin Cup and the FM Zone. Approximately 16line km are planned in the IP survey;
- three additional holes at Tin Cup; and
- two drill holes at the FM Zone.
See Figure 1 for details of the proposed explorationplan at Secret Pass.
The Secret Pass Project mineral claims are in goodstanding with permits in place for the proposed drill holes. NorthernLights intends to restart the exploration activities at Secret Passwhen the Company has sufficient funds to complete the explorationprogram.
See Figure 1 for details of the proposed explorationplan at Secret Pass.
The Secret Pass Project mineral claims are in goodstanding with permits in place for the proposed drill holes. NorthernLights intends to restart the exploration activities at Secret Passwhen the Company has sufficient funds to complete the explorationprogram.
Figure 1: DrillLocations, Gold Soil Anomalies, Proposed IP Grid
b) Medicine SpringsProject
On December 15, 2022, Northern Lights announced thesale of its remaining 25% interest in the Medicine Springs ProjectOption to Reyna Silver Corp (“Reyna Silver”). As part of theconsideration on the sale of the Medicine Springs Option, Reyna Silveragreed to grant Northern Lights a 1% NSR interest over the entireMedicine Springs Project.
Since initially optioning the Medicine Project fromNorthern Lights in 2020, Reyna Silver has completed a structuralsurvey, a geophysical survey ( Magneto-Telluric) and eight diamonddrill holes (approximately 3,185 metres total) on the Medicine Springsproject targeting the identification of a district-scale silver-richCarbonate Replacement Deposit (“CRD”) mineralization system.
Reyna Silver has reported that the exploration workcompleted on Medicine Springs to date indicates strong silver and zincmineralization has been found in seven out of nine sub-parallelstructures cutting through an area 660 m wide and 1.75 km long. Allthe structures show multiple stages of high-grade mineralizationsurrounded by wide zones of dispersed mineralization. The structurescontinue in both directions well beyond the initial drilling area andmany additional structures along and adjacent to the corridor remainto be tested.
These results reinforce Medicine Springs as a primecandidate for a large-scale, well-mineralized CRD System. (See ReynaSilver's announcement dated November 8, 2023, for furtherdetails).
c) New ExplorationProjects
Northern Lights is currently reviewing severalexploration projects for potential acquisition. The projects beingreviewed have a copper and/or gold focus and are in mining-friendlyjurisdictions in North America.
The addition of one or more projects will providefurther optionality to the Northern Lights project portfolio.
Competent Persons Statement
Information in this report relating to ExplorationResults is based on information reviewed by Mr. Lee R. Beasley, aCertified Professional Geologist who is a Member of the AmericanInstitute of Professional Geologists, and a consultant to NorthernLights Resources. Mr. Beasley has sufficient experience which isrelevant to the style of mineralization and type of deposit underconsideration and to the activity which he is undertaking to qualifyas a Qualified Person for NI43-101 Standards of Disclosure for MineralProjects. Mr. Beasley consents to the inclusion of the data in theform and context in which it appears.
For further information, please contact:
Albert Timcke, Executive Chairman andPresident
Email: rtimcke@northernlightsresources.com
Tel: +1 604 608 6163
3. Jason Bahnsen, Chief Executive Officer
4. Email: Jason@northernlightsresources.com
5. Tel: +1 604 608 6163
6. About Northern Lights Resources Corp.
Northern Lights Resources Corp is a growth-orientedexploration and development company that is advancing two projects:The 100% owned, Secret Pass Gold Project located in Arizona. NorthernLights also has exposure to the Medicine Springs Project in Nevada viaan equity position in Reyna Silver Corp plus a 1% future NSR royaltyon the Medicine Springs Project.
Northern Lights Resources trades under the ticker of“NLR” on the CSE. This and other Northern Lights Resources newsreleases can be viewed at www.sedar.com and www.northernlightsresources.com .
CAUTIONARY STATEMENT REGARDINGFORWARD-LOOKING INFORMATION : Thisnews release includes certain “forward-looking statements” underapplicable Canadian securities legislation. Forward-looking statementsinclude, but are not limited to, statements with respect to: the termsand conditions of the proposed private placement; use of funds; thebusiness and operations of the Company after the proposed closing ofthe Offering. Forward-looking statements are necessarily based upon anumber of estimates and assumptions that, while considered reasonable,are subject to known and unknown risks, uncertainties, and otherfactors that may cause the actual results and future events to differmaterially from those expressed or implied by such forward-lookingstatements. Such factors include, but are not limited to: generalbusiness, economic, competitive, political and social uncertainties;delay or failure to receive board, shareholder or regulatoryapprovals; and the uncertainties surrounding the mineral explorationindustry. There can be no assurance that such statements will prove tobe accurate, as actual results and future events could differmaterially from those anticipated in such statements. Accordingly,readers should not place undue reliance on forward-looking statements.The Company disclaims any intention or obligation to update or reviseany forward-looking statements, whether as a result of newinformation, future events or otherwise, except as required bylaw
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