VANCOUVER, BC and HONG KONG, CHINA / ACCESSWIRE / April 24, 2023 / Reyna Silver Corp. (TSXV:RSLV)(OTCQX:RSNVF)(FRA:4ZC) ("Reyna" or the "Company") is pleased to announce that it has reached an agreement to amend the terms of the option agreement dated August 20, 2017, as amended by agreements dated July 29, 2020, September 28, 2020, July 14, 2021, and November 21, 2022 (collectively, the "Option Agreement"), with Messrs. Stephen Sutherland and Herb Duerr (collectively, the "Optionors"), pursuant to which Reyna has the option to acquire a 100% interest in the Optionors' Medicine Springs Project located in Nevada, USA (the "Property"). The Option Agreement was previously between the Optionors and Northern Lights Resources Corp. ("NLR"), and Reyna acquired and assumed NLR's interest in and to the Option Agreement and the underlying Property pursuant to an option interest acquisition agreement dated December 14, 2022 (the "Acquisition Agreement"), between NLR and Reyna. Further details of the Acquisition Agreement are disclosed in the Company's news releases of December 15, 2022, and January 5, 2023. The amendments to the Option Agreement were effected by way of an amendment dated March 30, 2023 between Reyna and the Optionors (the "Amendment").
"We are pleased that Herb Duerr and Stephen Sutherland believe in Medicine Springs enough to amend the option agreement terms by reconfiguring the obligations so that more money can go into the ground, and taking some equity in lieu of cash," said Jorge Ramiro Monroy, CEO of Reyna Silver. "Herb and Stephen have almost 100 years of combined experience and involvement with success stories in Nevada and Arizona - including Alligator Ridge and Sunnyside. We are gratified our focus on high-grade, district-scale projects aligned with their focus on identifying extensive systems with big alteration. This is why both parties look forward to drilling at Medicine Springs in 2023, building upon the reconnaissance drilling in 2022."
Under the Option Agreement, in order to exercise the option, NLR was required to make cash payments in the aggregate of US$950,000 to the Optionors, issue common shares of NLR to the Optionors having a total aggregate value of US$100,000, make an additional cash payment of US$150,000 to the Optionors in lieu of the issuance of common shares of NLR having an aggregate value of US$150,000 to the Optionors, and make a total aggregate minimum expenditure on the development of the Property of US$2,700,000. NLR was also required to make a payment of US$24,800 to maintain the mineral claims included in the Property.
The Amendment amends these obligations as follows:
|
Option Agreement |
Amendment |
| Cash Consideration ($) |
- US$25,000 within 30 days of approval by the Canadian Stock Exchange
- US$50,000 on or before December 31, 2020
- US$100,000 on or before December 31, 2021
- US$150,000 within 30 days of Phase 4 start date
- US$200,000 within 30 days of Phase 5 start date
- US$425,000 within 30 days of Phase 6 start date
- US$150,000 (in lieu of equity consideration) on or before December 31, 2023
|
- US$150,000 mandatory cash payment within 3 days of execution of Amendment (paid on February 28, 2023)
- US$200,000 mandatory cash payment on or before September 15, 2023
- US$400,000 on or before February 1, 2024
- US$125,000 on or before February 1, 2025
|
| Equity Consideration ($) |
- US$50,000 within Phase 2 period
- US$50,000 on or before December 31, 2021
|
- US$100,000 on or before February 1, 2024 (the "Consideration Shares")
|
| Minimum Work Commitment on Property ($) |
- US$950,000 on or before December 31, 2022
- US$500,000 within 12 months of Phase 4 start date
- US$500,000 within 12 months of Phase 5 start date
- US$750,000 on or before December 31, 2023
|
- Make such additional expenditures on the development of the Property such that the total aggregate expenditures on the Property is not less than US$2,700,000 on or before December 31, 2023
|
| Mineral Claim Fees |
- US$24,800 on execution of Option Agreement
- US$25,503 on or before August 1, 2020
|
- Such amount as is required to maintain the mineral claims included in the Property in good standing on or before July 15, 2023
|
The Amendment and the issuance of the Consideration Shares remain subject to the approval of the TSX Venture Exchange.
On Behalf of the Board of Directors of Reyna Silver Corp.
Jorge Ramiro Monroy
Chief Executive Officer
For Further Information, Please Contact:
Jorge Ramiro Monroy, Chief Executive Officer
info@reynasilver.com
www.reynasilver.com
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.
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 covers most of Mexico's historically highest-grade silver system. The Company also has an option to acquire 100% of the Medicine Springs property in Nevada, USA, as well as the early-stage La Durazno and Matilde and La Reyna mineral properties in Mexico.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statements
This news release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation. The forward-looking statements herein are made as of the date of this news release only, and the Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. These forward-looking statements include, among other things, statements relating to the TSX Venture Exchange's approval of the [Amendment] and the issuance of the Consideration Shares.
Such forward-looking statements are based on a number of assumptions of management, including, without limitation, that the TSX Venture Exchange will approve of [the Amendment] and the issuance of the Consideration Shares. Additionally, forward-looking information involve a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of the Company to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) the failure of the Company to obtain approval of the TSX Venture Exchange to [the Amendment] and the issuance of the Consideration Shares, and (b) unanticipated costs.
Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. Neither the Company nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this news release. Neither the Company nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this news release by you or any of your representatives or for omissions from the information in this news release.
SOURCE: Reyna Silver Corp.
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https://www.accesswire.com/750826/Reyna-Silver-Amends-Terms-of-Medicine-Springs-Option-Agreement
