Northern Lights - Announces Sale of Interest in Medicine Springs Project for $2.2 Million
Northern Lights – Announces Sale of Interest in
Medicine Springs Project for $2.2 Million
Vancouver, British Columbia. 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).
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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 September 2022, Reyna Silver began an initial 5,000 metre exploration drilling program at Medicine
Springs (assays pending). The drilling program is targeting 4 key areas with the aim to define high-grade
carbonate replacement deposit (CRD) sulfide mineralization at depth.
Medicine Springs shows most of the key features of large -scale CRDs, especially the three most important
factors: location, structure, and gr ade. The geological setting at Medicine Springs is analogous to Taylor -
Hermosa Zn-Pb-Ag deposit in Arizona (acquired by South32 for approximately $CAD 1.9 billion in 2018).
Figure 1 – Medicine Springs Project Location
Figure 2 – Medicine Springs Current Drill Program Showing Drill Target Areas
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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 NLR’s 25% interest in the Medicine Spring s Option Agreement Reyna Silver will make
the following consideration payments to NLR:
1) Cash Consideration Payment of US$100,000; and
2) Equity Consideration Payment 6,000,000 common shares of Reyna Silver Corp. The Equity
ConsiderationThe Consideration Shares will be subject to contractual resale restrictions over a
twenty-four (24) month period
3) 1% NSR Royalty over the Medicine Springs Project licenses. The royalty to NLR will not become
effective until Reyna Silver has completed the Medicine Springs Option Agreement obligations and
owns 100% of the project.
The Transaction is subject to TSX.V, and other regulatory approvals as required. No shareholder approvals
are required. Closing is scheduled for 3 days after TSX.V a pproval and other closing conditions have been
met.
NLR has agreed Finders fees totaling $40,000 to be paid as common shares of NLR.
About Reyna Silver Corp.
Reyna Silver Corp. (TSXV: RSLV) is a growth-oriented junior exploration and development company focused
on exploring for high-grade, district-scale silver deposits in Mexico and USA.
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Reyna Silver Corp has a market capitalization of approximately $ 41 million and a share price of $0.3 5 with
117.1m shares on issue (as of December 14, 2022).
In addition to the Medicine Springs Projects, Reyna’s principal properties are the Guigui and Batopilas
Properties in Chihuahua, Mexico.
Guigui covers the interpreted source area for the Santa Eulalia Carbonate Replacement District (CRD) and
Batopilas is believed to be the highest-grade silver system in Mexico's history, having produced an estimated
over 300 Moz of native silver from ores that averaged over 1500 g/t. Reyna’s work has identified a previously
unrecognized gold overprint on the silver mineralization.
Competent Persons Statement
Information in this report relating to Exploration Results is based on information reviewed by Mr. Lee R.
Beasley, a Certified Professional Geologist who is a Member of the American Institute of Professional
Geologists, and a consultant to Northern Lights Resources. Mr. Beasley has sufficient experience which is
relevant to the style of mineralization and type of deposit under consideration and to the activity which he is
undertaking to qualify as a Qualified Person for the purposes of NI43-101 Standards of Disclosure for
Mineral Projects. Mr. Beasley consents to the inclusion of the data in the form and context in which it
appears.
For further information, please contact:
Albert Timcke, Executive Chairman and President
Email: [email protected]
Tel: +1 604 608 6163
Jason Bahnsen, Chief Executive Officer
Email: [email protected]
Tel: +1 604 608 6163
About Northern Lights Resources Corp.
Northern Lights Resources Corp is a growth -oriented exploration and development company that is
advancing two projects: The 100% owned, Secret Pass Gold Project located in Arizona; and the Medicine
Springs silver-zinc-lead Project located in Elko County Nevada where Northern Lights, in joint venture with
Reyna Silver are earning 100% ownership. Northern Lights Resources is a member of the Arizona Mining
Association.
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Northern Lights Resources trades under the ticker of “NLR” on the CSE and “NLRCF” on the OTCQB. This
and other Northern Lights Resources news releases can be viewed at www.sedar.com and
www.northernlightsresources.com.
CAUTIONARY STATEMENT REGARDING FORWARD -LOOKING INFORMATION : This new s release
includes certain “forward -looking statements” under applicable Canadian securities legislation. Forward -
looking statements include, but are not limited to, statements with respect to: the terms and conditions of the
proposed private placement; use of funds; the business and operations of the Company after the proposed
closing of the Offering. Forward-looking statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and
other factors which may cause the actual results and future events to differ materially from those expressed
or implied by such forward-looking statements. Such factors include, but are not limited to: general business,
economic, competitive, political and social uncertainties; delay or failure to receive board, shareholder or
regulatory approvals; and the uncertainties surrounding the mineral exploration industry. There can be no
assurance that such statements will prove to be accurate, as actual results and future events could differ
materially 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 up date or revise any
forward-looking statements, whether as a result of new information, future events or otherwise, except as
required by law.