Terraco has royalty coverage on claims covering the Spring Valley Gold Project ("Spring Valley "), located in Pershing County, Nevada. Spring Valley is a joint venture between Barrick Gold Corp. ("Barrick") and Midway Gold Corp. ("Midway"), where Barrick has earned a 60% interest in the project by completing work expenditures totaling US$30,000,000. The Barrick earn-in was announced by Midway in early 2013 and simultaneously Barrick notified Midway of its intent to spend an additional US$8,000,000 in order to earn 70% interest in the Spring Valley joint venture. Barrick is the operator of the joint venture, has accelerated its earn-in under the joint venture terms and the project was upgraded to the Barrick's development team in early 2012.
Terraco's net smelter returns ("NSR") royalty coverage includes three separate components. The map below and colour codes provides a schematic of the royalties.
(Per #2, Terraco currently has direct ownership of 0.5% NSR royalty plus an option (by December 2016) to purchase an additional 0.5% NSR royalty for a total of up to 1% NSR)