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$24,800 to maintain the mineral claims included in the Property.
The Amendment amends these obligations as follows:
| Option Agreement | Amendment | |
| Cash Consideration ($) |
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| Equity Consideration ($) |
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| Minimum Work Commitment on Property ($) |
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| Mineral Claim Fees |
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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
[email protected]
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…
Read More: Reyna Silver Amends Terms of Medicine Springs Option Agreement