NLRCF - Northern Lights -- Completes Sale of Option Interest in Medicine Springs Project
(TheNewswire)
Vancouver, British Columbia – TheNewswire - December 23, 2022 - Northern Lights Resources Corp. (“Northern Lights” or the “Company”)(CSE:NLR ) , ( OTC:NLRCF) ispleased to announce that it has completed thesale of its 25% interest in the Medicine Springs Project OptionAgreement to Reyna Silver Corp. (TSX.V RSLV) under the terms announcedby the Company on December 15, 2022 (the “Transaction”).
Highlights
The total value of the consideration paid to NLR forits 25% option interest in the Medicine Springs Project isapproximately $2.3 million plus the value of the future NSR royaltyinterest.
Consideration received by NLR from Reyna Silverconsists of:
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US$100,000 Cash Payment
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6,000,000 shares of Reyna Silver Corp
(as at Dec 22, 2022 - share price $0.365,total market value $2.19 million)
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1% NSR Royalty over Medicine Project (option for RYSLto buy back 0.5% for US$2.5 million)
Northern Lights CEO, Jason Bahnsen commented “Thecompletion of the sale of NLR’s 25% stake in the Medicine SpringsProject option positions NLR to focus on the exploration of the SecretPass Gold Project in Arizona as well the review of new potentialproject acquisition opportunities. We believe the Medicine SpringsProject has the potential to develop into a district-level silver andbase metals project under the management of the Reyna Silver team withthe guidance of CRD expert geologist Dr. Peter Megaw. Northern Lightsretains significant exposure to the Medicine Springs Project as wellas Reyna Silver’s Guigui and Batopilas projects in Mexico via theReyna Silver 5% equity position and the future NSR royalty on MedicineSprings.”
The Transaction
Under the terms of the Transaction, Northern Lightswill assign all of its rights and obligations under the MedicineSprings Option Agreement to Reyna Silver. Upon completion of theTransaction, Reyna Silver will have the option to acquire 100% of theMedicine Springs Project by completing the minimum explorationexpenditure as per the Medicine Springs Option Agreement. ReynaSilver will be responsible for all obligations under the MedicineSprings Option Agreement including any consideration payments due tothe project vendors from Nothern Lights under the terms of theMedicine Springs Option Agreement.
In consideration for the purchase of NLR’s 25%interest in the Medicine Springs Option Agreement Reyna Silver willmake the following payments to NLR:
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1) Cash Consideration Payment ofUS$100,000; and
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2) Equity Consideration Payment6,000,000 common shares of Reyna Silver Corp. The Reyna Silver sharesheld by NLR will be subject to contractual resale restrictions over atwenty-four (24) month period
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3) 1% NSR Royalty over theMedicine Springs Project licenses. The royalty to NLR will not becomeeffective until Reyna Silver has completed the Medicine Springs OptionAgreement obligations and owns 100% of the project. Reyna Silverretains the right to purchase 0.5% of the NSR Royalty for a cashconsideration of US$2.5 million at any time in the future.
The Company has agreed to pay a finders fee to anarms-length party of $40,000 paid in common shares of NLR.
Reyna Silver has received approval from the TSX VentureExchange to complete the Transaction.
For further information, please contact:
Albert Timcke, Executive Chairman and President
Email: rtimcke@northernlightsresources.com
Tel: +1 604 608 6163
Jason Bahnsen, Chief Executive Officer
Email: Jason@northernlightsresources.com
Tel: +1 604 608 6163
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; and theMedicine Springs silver-zinc-lead Project located in Elko CountyNevada where Northern Lights, in joint venture with Reyna Silver areearning 100% ownership. Northern Lights Resources is a member of theArizona Mining Association.
Northern Lights Resources trades under the ticker of“NLR” on the CSE and “NLRCF” on the OTCQB. This and otherNorthern Lights Resources news releases can be viewed at www.sedar.com and www.northernlightsresources.com .
CAUTIONARY STATEMENT REGARDINGFORWARD-LOOKING INFORMATION : This news releaseincludes certain “forward-looking statements” under applicableCanadian securities legislation. Forward-looking statements include,but are not limited to, statements with respect to: the terms andconditions 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 upona number of estimates and assumptions that, while consideredreasonable, are subject to known and unknown risks, uncertainties, andother factors which may cause the actual results and future events todiffer materially from those expressed or implied by suchforward-looking statements. Such factors include, but are not limitedto: general business, economic, competitive, political and socialuncertainties; delay or failure to receive board, shareholder orregulatory approvals; and the uncertainties surrounding the mineralexploration industry. There can be no assurance that such statementswill prove to be accurate, as actual results and future events coulddiffer materially from those anticipated in such statements.Accordingly, readers should not place undue reliance on forwardlooking statements. The Company disclaims any intention orobligation to update or revise any forward-looking statements, whetheras a result of new information, future events or otherwise, except asrequired by law.
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