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 70% interest in the project (2014) by completing work expenditures totaling US$38 million. In addition, Midway Gold has converted its 30% interest into a 25% free-carried interest in Spring Valley; as a result, will be carried to production by Barrick and will pay back its share of development capital from production. 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. The Barrick Spring Valley budget for 2014 is over US$17 million.
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)