Silver Range Resources Ltd (TSX-V:SNG, OTC:SLRRF) said it has renegotiated and concluded a new option on the Legal Tender property in Royston Hills, Nevada, with QLM Royston Hills LLC.
The company said the property is located in the Republic Mining District, a silver-gold camp that produced briefly in the early 1900s.
It covers the historic Farris, Hyland and Black Butte mines and numerous other exploration workings, it added.
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Silver Range said QLM can acquire a 100% interest in the Legal Tender property over a four-year period by making cash payments totalling US$410,000, with an initial payment of US$10,000 made on signing.
Silver Range said it will retain a 2% net smelter return (NSR) payable on proceeds from any production in excess of 5,000 tonnes.
QLM may purchase one-half of the NSR for US$1 million at any time prior to commercial production, the company noted.
It said that in addition to the NSR, Silver Range will receive a one-time defined resource payment equal to US$5 per ounce of gold and US$0.10 per ounce of silver contained in any measured or indicated resource identified on the property.
Annual advance NSR payments of US$10,000 will be due and owing on the fifth and subsequent anniversaries of the option agreement if no measured or indicated resource has been identified by December 1, 2027, Silver Range said.
Silver Range is a precious metals prospect generator working in Nevada and Northern Canada.
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