Northern Lights Executes Option/JV Agreement with Reyna Silver Corp
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Northern Lights Executes Option/Joint Venture Agreement
for the Medicine Springs Project with Reyna Silver Corp.
October 5, 2020 CSE Symbol: NLR
Vancouver, British Columbia . Northern Lights Resources Corp. (“Northern Lights”
or “NLR”) is pleased to announce that it has executed a Property Option and Joint Venture
Agreement (the “Agreement”) with Reyna Silver Corp. (TSX.V:RSLV) (“Reyna Silver”)
on the Medicine Springs Project in Elko County, Nevada, U.S.A. (the “Transaction”).
The Medicine Springs Project comprises 149 unpatented Federal mineral claims covering
1,189 Ha located in the Ruby Mountains Valley just off the famous Carlin Trend. The
Medicine Springs Project has the potential to ho st silver-zinc-lead Carbonate
Replacement Deposit (“CRD”) mineralization. Northern Lights is currently earning a 100%
interest in the Medicine Springs Project under the terms of an option agreement with the
underlying claim owners executed August 20, 2017 (the “NLR 2017 Option”).
Under the terms of the Agreement , Reyna can earn up to 80% equity in the Medicine
Springs Project by completing minimum exploration expenditure s of US$2.4 million plus
other commitments and paying a cash payment of US$1 million to Northern Lights by no
later than December 31, 2023. (See “Key Terms of the Property Option and Joint Venture
Agreement” for details). Upon completion, Northern Lights and Reyna Silver will jointly
own 100% of the Medicine Springs Project and will establish a Joint Venture.
Northern Lights has a free carried interest (with no future repayment) on all exploration
expenditures on the Medicine Springs Project until Reyna Silver has spent a minimum of
US$4 million. After the free carry period is complete, Northern Lights will contribute to
joint venture expenditures on an equity basis.
The Transaction is legally binding with completion only subject to the finalization of Reyna
Silver’s legal due diligence on the Medicine Springs Project mineral claims that is to be
finished by the end of October 2020.
Northern Lights CEO, Jason Bahnsen commented “We are delighted to have Reyna
Silver as a joint venture partner on the Medicine Springs Project. Medicine Springs is a
CRD system with high-grade silver potential similar to Reyna Silver’s flagship Guigui
Project in Mexico. This joint venture leverages the exploration work that Northern Lights
has completed on the project together with the proven CRD expertise of Dr. Peter
Megaw and the team at Reyna Silver. We look forward to working together with Reyna
Silver to accelerate unlocking the potential of Medicine Springs.”
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Figure 1: Medicine Springs Location Figure 2: CRD Model for Medicine Springs
The Medicine Springs Project
Dr. Peter Megaw, Technical Advisor to Reyna Silver commented “Medicine Springs
ticks the most important boxes we look for in CRD exploration including location on a
large regional structure that hosts significant CRDs, situated at the top or a thick section
of potentially favorable carbonate host rocks and evidence of high silver grades. Some of
the dump and rock chip samples run well over our 400 g/t (12 oz/t) silver threshold and it
is quite likely that similar grades were diluted by the Reverse Circulation drilling used
historically in the district. We will be dril ling core to get a true picture of the clearly
structurally-controlled mineralization as we trace it towards its source.”
Since acquiring the Medicine Springs Project in 2017, Northern Lights has completed
exploration work including detailed geological mapping, rock sampling, analysis of historic
geophysical survey data (CSAMT and IP), review of historic exploration drilling, an
aeromagnetic survey and an Ionic Leach soil geochemistry survey (see Figure 3).
The historic 125 shallow Reverse Circulation drill holes on the Medicine Springs Project
encountered p artially oxidized silver -zinc-lead mineralization at depth s of up to 180
meters intersecting silver grades of up to 225 g/t . An extensive rock sampling program
was completed in 2018 with a total of 66 samples collected in conjunction with surface
mapping. Of the 66 samples collected, 27 samples assayed greater than 20 g/t silver and
there were 17 samples with silver assays exceeding 100 g/t and a maximum value of 559
g/t. The Ionic Leach soil geochemi stry survey completed in 2019 defined a strong
coherent NE trending silver-zinc-lead anomaly which measures more than 2,000 meters
in length and ranges up to 500 meters in width.
The results of the exploration work completed by Northern Lights at the Medicine Springs
Project highlight the potential for significant silve r-zinc-lead mineralization including the
potential for high-grade CRD style mineralization.
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Figure 3: Medicine Springs Project - Rock Assays / Ionic Leach Ag-Zn-Pb Soil Anomaly
Northern Lights has an initial approved exploration drill program of approximately 4,900
meters in place for the Medicine Springs Project. Reyna Silver intends to start work on
the property immediately with a focus on evaluation and the start of exploration core
drilling.
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Key Terms of the Property Option and Joint Venture Agreement
1. Reyna Silver has the option to earn an initial 75% ownership in the Medicine Springs
Project with NLR retaining 25%.
2. Reyna Silver has the option to acquire an additional 5% of the Medicine Springs Project
by paying NLR US$1,000,000.
3. Reyna Silver is appointed the operator and manager of the Medicine Springs Project
with a joint operating committee to be established with representatives from both parties.
4. Reyna Silver must complete expenditure commitments of approximately US$2,400,000
on the Medicine Springs Project by December 31, 2023, including a minimum of
US$700,000 to be spent before December 31, 2021.
5. Except for US$50,000 that will be paid by NLR, Reyna Silver will be responsible for
making all remaining cash consideration payments (US$875,000) to the underlying claim
owners under the NLR 2017 Option.
6. NLR to make all remaining equity consideration payments (US$200,000) to the
underlying claim owners under the NLR 2017 Option.
7. NLR’s equity interest in the Medicine Springs Project is free carried, with no future
repayment of Joint Venture expenditures until Reyna Silver has spent a total of
US$4,000,000. NLR will then contribute to Joint Venture expenditures on an equity
basis.
8. Any mineral claims acquired by either party within five miles of the outer boundaries of
the current Medicine Springs Project will form part of the Joint Venture.
9. Reyna Silver to assume all other rights and obligations of the underlying NLR 2017
Option.
The scientific and technical data contained in this news release was reviewed and
approved by Gary Artmont (Fellow Member AUSIMM #312718), Head of Geology and
qualified person to Northern Lights Resources, who is responsible for ensuring that the
geologic information provided in this news release is accurate and who acts as a “qualified
person” under National Instrument 43-101 Standards of Disclosure for Mineral Projects.
For further information on Medicine Springs Project and Northern Lights Resources
please contact:
Albert Timcke, Executive Chairman and President
Email: [email protected]
Tel: +1 604 608 6163
Or
Jason Bahnsen, Chief Executive Officer
Email: [email protected]
Tel: +1 604 608 6163
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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 is earning 100%.
Northern Lights Resources trades under the ticker of “NLR” on the CSE. This and other
Northern Lights Resources news releases can be viewed at www.sedar.com and
www.northernlightsresources.com.
About Reyna Silver Corp.
Reyna Silver Corp. is a silver exploration company with a robust portfolio of Mexican silver
assets. The Company was built around the Guigui and Batopilas Projects, which formed
part of MAG Silver’s original IPO portfolio. Reyna’s strategy centers around leveraging its
expertise in Mexico to explore projects that have the potential for high-grade, district-scale
discoveries.
Reyna Silver Corp. trades under the ticker RSLV on the TSX.V . This and other Reyna
Silver Corp. can be viewed at www.sedar.com and www.reynasilver.com
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