Northern Lights Resources Completes Sale of Medicine Springs to Reyna Silver
Northern Lights – Completes Sale of Option Interest in
Medicine Springs Project
Vancouver, British Columbia. 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 pro jects 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 25% interest in the Medicine Springs Option Agreement Reyna
Silver will make the following payments to NLR:
1) Cash Consideration Payment of US$100,000; and
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2) Equity Consideration Payment 6,000,000 common shares of Reyna Silver Corp. The Reyna Silver
shares held by NLR 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 com pleted the Medicine Springs Option Agreement obligations and
owns 100% of the project. Reyna Silver retains the right to purchase 0.5% of the NSR Royalty for a
cash consideration of US$2.5 million at any time in the future.
The Company has agreed to pay a finders fee to an arms-length party of $40,000 paid in common shares of
NLR.
Reyna Silver has received approval from the TSX Venture Exchange to complete the Transaction.
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 Proje ct 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.
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 news 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
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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 obliga tion to update or revise any
forward-looking statements, whether as a result of new information, future events or otherwise, except as
required by law.