Under the terms of an August 31, 2016 letter of intent, the Purchaser may acquire a 100% interest in the Silver Range project by making a series of timed share issuances to Silver Range as specific milestone events are achieved over a period ending December 31, 2020. In addition, Silver Range will retain smelter return royalty interests of 2% on all future precious metals production and 1% on all future non-precious metals production from the Silver Range project.
In March of 2016, Silver Range elected to change its business model from the advanced exploration of zinc-silver-lead prospects in Yukon to a project generator with a focus on high grade gold targets in Nunavut, the Northwest Territories and Nevada. Over the past four months, Silver Range has assembled a portfolio of approximately 16 gold projects and has started to market these properties to interested third parties. The proposed sale of the Silver Range project is consistent with the change of business model.
