Silver Range Resources Ltd (CVE:SNG) (OTCMKTS:SLRRF) (FRA:8SR), the prospect generator, told investors it had optioned out its Legal Tender high grade silver prospect in Nevada to QLM Royston Hills LLC, which can buy all the property for US$430,000 over four years.
The asset lies 62 kilometres (km) northwest of Tonopah and sits in the Republic Mining District, a silver-gold epithermal camp, which produced briefly in the early 1900s.
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It covers the historic Farris, Hyland and Black Butte mines and numerous other exploration workings. Grab samples collected by Silver Range at the project have returned up to 1,875 grams per ton (g/t) silver and 4.94 g/t gold.
QLM made an initial payment of US$20,000 on signing and can buy 100% by paying US$430,000 in cash over four years.
Silver Range will retain a 2% net smelter return (NSR), which is payable on proceeds from any production of more than 5,000 tonnes.
QLM may also purchase one-half of the NSR for US$1 million at any time prior to commercial production.
In addition, Defined Resource Payments (DRP) of US$5 per ounce of gold and US$0.10 per ounce of silver are payable following the declaration of NI 43 101 measured and indicated (M&I) resources.
Annual advance payments of $10,000 are due on the fifth and subsequent anniversaries of the option agreement if no M&I resources have been declared.
Silver Range is focused on Nevada and northern Canada. It has assembled a portfolio of 45 properties, of which nine are currently under option, while three have been converted to royalty interests.
Contact the author at giles@proactiveinvestors.com