(via TheNewswire)
Highlights
The total value of the consideration paid to NLR for its 25% option interest in the
Consideration received by NLR from Reyna Silver consists of:
US$100,000 Cash Payment
6,000,000 shares of Reyna Silver Corp
(as at
1% NSR Royalty over
Medicine Project (option for RYSL to buy back 0.5% forUS$2.5 million )
Northern Lights CEO,
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
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
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 completed 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 ofUS$2.5 million at any time in the future.
The Company has agreed to pay a finders fee to an arms-length party of
Reyna Silver has received approval from the
For further information, please contact:
Email:rtimcke@northernlightsresources.com
Tel: +1 604 608 6163
Email:Jason@northernlightsresources.com
Tel: +1 604 608 6163
About
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 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 update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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