Silver Range Resources Ltd. (TSX-V:SNG) revealed that it holds 10% of the outstanding shares of Broden Mining Ltd., a private company that is working with Ross River Dena Council (RRDC), to complete the acquisition of a large package of land (Vangorda Lands) in the Faro Mining Camp, in southern Yukon.
The Vancouver-based precious metals prospect generator said the Vangorda Lands host several deposits containing “zinc, lead, silver and other valuable metals, and there is excellent potential for additional discoveries.”
On August 30 this year, Broden and the RRDC formed Tze Zul Development Corporation as the vehicle to explore the Vangorda Lands and, if warranted, develop the deposits. The parties have an agreement in principle with Canada and Yukon related to the acquisition of mineral rights within the Vangorda Plateau portion of the Faro Mine reclamation area and quartz mining claims that are under receivership, to the southeast of the Vangorda Plateau.
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Tze Zul will not be acquiring any rights or obligations concerning the remainder of the Faro Mine reclamation area, which covers the former Faro Mine, the old mill complex and the tailings storage facility, said the company.
Silver Range said it acquired its interest in Broden as part of a 2016 property transaction. “Under the 2016 agreement, Broden was granted the right to acquire the Silver Range Project, which lies immediately north of the Vangorda Lands,” said the company.
In consideration of the sale of its 100% interest in the project, Silver Range will receive:
- The number of common shares of Broden equal to 10% of the issued Broden share capital outstanding on completion of a Broden equity financing immediately following the completion of development agreements between Broden, RRDC, the Yukon Government and the federal government to explore and develop the Vangorda Lands;
- A one-time cash payment of C$10 million in the event that commercial production starts at the project, or any part thereof before commercial production on the Vangorda Lands, due 12 months from the commencement of the applicable commercial production; and
- A net smelter return royalty interest of 2% on all future precious metals production and 1% on all future non-precious metals production from the project.
Silver Range is a precious metals prospect generator working in Nevada and Northern Canada. It has assembled a portfolio of 45 properties, of which 16 are currently under option to others. Three other properties have been converted to royalty interests. Silver Range is actively seeking joint venture partners to explore the high-grade precious metals targets in its portfolio.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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