Terraco has royalty coverage on claims covering the Spring Valley Gold Project ("Spring Valley "), located in Pershing County, Nevada. Spring Valley is 100% owned Waterton Global Resource Management, Inc. ("Waterton") through its subsidiaries.
Terraco's net smelter returns ("NSR") royalty coverage includes three separate components. The map below and colour codes provides a schematic of the royalties.
- An option to acquire up to a 3.0% NSR royalty (by December 2016) on claims covering (outlined in RED hatching on map below) the majority of the currently outlined Spring Valley gold deposit.
- A total of up to 1% NSR royalty on the remaining portion (outlined in GREEN hatching on map below) of the currently outlined Spring Valley gold deposit as well as areas to the north of the currently outlined NI 43-101 gold resource.
Terraco has a Right of First Refusal (ROFR) for a 1% NSR royalty on claims within a one-half (1/2) mile perimeter area of interest (around the claims in RED).
- (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)