Historically, the region focused on high-grade silver, lead and zinc mineralisation. Credit: Biswaphotography93/Shutterstock.

Reyna Silver has signed an option agreement with Aulode for the Union Hill Project in Eureka County, Nevada, US.

The deal provides Reyna Silver with a two-stage option to earn complete ownership of the project, including mineral rights and the right to prospect and explore.

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Under the First Option, Reyna Silver must make cash payments to Aulode totalling $917,500 (C$1.26m) by 2 August 2030.

The Second Option, contingent on a production decision, requires additional payments of $500,000 within 30 days after obtaining necessary construction and environmental permits.

Furthermore, Reyna Silver is obligated to pay $2m no later than three months before the projected start of construction.

If no production decision is made by 2 August 2030, Reyna Silver can extend the Second Option by up to three additional years with $250,000 payments for each year.

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Upon exercising the Second Option, Reyna Silver will grant Aulode a 2.5% net smelter return (NSR) royalty.

Reyna Silver also retains the right to buy back 1.25% of this NSR for $2.5m.

If a production decision is not reached by 2 August 2033, Reyna Silver will transfer its rights back to Aulode, receiving a 2% NSR royalty, which Aulode can partially repurchase.

The Union Hill Project’s strategic importance is underscored by imminent drilling plans targeting the extensive system’s framework, including identifying major potentially mineralised structures and exploration vectors.

The Union patented claims expand Reyna Silver’s control over the Gryphon Summit project, now encompassing 12,058.98 hectares of identified potential for gold, silver and critical metals.

This region historically focused on high-grade silver, lead and zinc mineralisation, leaving sulphide deposits untouched.

Reyna Silver aims to leverage historic carbonate replacement deposits (CRD) to vector towards significant sulfide Ag-Pb-Zn mineralisation beneath the historical production zones.

Reyna Silver president and CEO Jorge Ramiro Monroy said: “The Union patented claims were the last puzzle piece Reyna Silver needed to fully control Gryphon, providing the opportunity to take a serious look at Gryphon from new angles.

“We can’t wait to unleash our technical team’s experience discovering major CRDs in a comprehensive attack on the entire district’s combined gold, silver, plus critical metals endowment.”