Silver Range Resources Ltd (TSX-V:SNG, OTC:SLRRF) has revealed that it is set to option its Bellehelen silver-gold project in central Nevada, USA, to a private British Columbia (BC) company.
The deal, expected to be formally agreed within 45 days, will see the BC firm pay C$300,000 in cash and 200,000 shares over four years. It will also receive a 2% net smelter return (NSR), which is buyable down to 1% for C$1million. There is a US$2 per ounce (gold-equivalent) payment on any resource, which is defined at the asset.
The company must also complete a listing on a Canadian stock exchange by May 30 next year.
Silver Range acquired the project, which comprises 90 Federal lode claims around 70 kilometers east of Tonopah, in 2016.
READ: Silver Range Resources provides update on Nevada operations
The claims cover most of the historic Bellehelen mining district, where silver and gold was discovered around 1904. The area saw limited production from 1909 to 1927 and sporadic production during the 1930s. Total district production is estimated at 311,000 ounces silver-equivalent.
At the Ajax and Ben Hur mines and at numerous other showings on the project, gold and silver occurs in fracture zones and sheeted quartz veinlets. This material has returned grab sample assays of up to 11.25 grams per ton (g/t) gold and 1,490 g/t silver, the company said.
Vancouver-based Silver Range is a precious metals prospect generator working in Nevada and Northern Canada.
It has assembled a portfolio of 45 properties, of which 13 are currently under option to others. Four other properties have been converted to royalty interests.
Contact the author at giles@proactiveinvestors.com