Projects
Medicine Springs Project
Option Agreement
On August 20, 2017, Northern Lights entered into an Option Agreement to acquire a 100% interest in the certain mineral claims known as the Medicine Springs Property, situated in Elko County, Nevada.
On The Medicine Springs property is located in southeastern Elko County, Nevada and comprises 149 unpatented mineral claims covering 1189 hectares (2980 acres). The land is under the jurisdiction of the U.S. Bureau of Land Management (BLM). The property is readily accessible by a network of county and state roads which connect to Interstate Highway I-80, situated 18 kilometers (12 miles) to the north. The nearest population center is Elko, Nevada which is situated 160 kilometers (100 miles) to the northwest. Elko serves as a major support base for numerous large gold mines currently operated by Newmont Mining and Barrick Gold.
The Option Agreement is for a 6-year term. Completion of the Option Agreement is subject to staged payments of cash totaling $950,000, equity consideration of $250,000 and a minimum expenditure on the Property of $2,700,000 which are summarized in Table 1.
Phase | Cash Consideration to Project Vendors (US$) | Equity Consideration to Project Vendors (US$) | Minimum Work on Medicine Springs Project (US$) |
|---|---|---|---|
Year 1 | 25,000 | - | 250,000 |
Year 2 | 50,000 | 50,000 | 300,000 |
Year 3 | 100,000 | 50,000 | 400,000 |
Year 4 | 150,000 | 50,000 | 500,000 |
Year 5 | 200,000 | 50,000 | 500,000 |
Year 6 | 425,000 | 50,000 | 750,000 |
Total (US$) | 950,000 | 250,000 | 2,700,000 |
Table 1: Medicine Springs Property Option Agreement Terms
The mineral claims comprising the Property, are subject to a 2% Net Smelter Royalty (‘NSR’) with an additional 0.5% NSR applicable to the 123 claims previously owned by Newmont Mining Corporation.