NORTHERN MINERALS & EXPLORATION LTD.

After a long quiet stretch, Northern Minerals (now trading as NMEX) bought working interests in 14 producing natural gas wells across nine Oklahoma leases from Lost Creek Acquisitions for $293,000 ($25,000 cash plus 4 million restricted shares) - real cash-flowing assets, though a performance clawback lets the company unwind the deal if the wells don't hit a modest profit threshold. The board also turned over: director Victor Miranda resigned and Jose Serrano was appointed to replace him.

asset acquisition disposition

The company tried the Winnemucca Mountain property a third time - a 2018 option agreement with the same AHL Holdings/Golden Sands optionors again lapsed after a missed payment, and it signed yet another new option agreement in March 2019, continuing a years-long pattern of taking on and then defaulting on this same asset.

capital raising announcement

Northern Minerals defaulted on and lost its Winnemucca Mountain gold option entirely, and separately let both of its Grasshoppers-farmed Callahan County oil and gas leases expire unused - abandoning its Nevada mining ambitions and most of its original Texas oil and gas push in the same filing. It raised only $100,000 in a private placement to cover liabilities and catch up on late SEC filings, while retaining a smaller producing interest (Concho Richey #1 well) and an undeveloped Olson lease.

capital raising announcement

A second Texas oil and gas farm-out followed, with Cooper Basin Oil & Gas: a 67.5% working interest in three already-producing Coleman County wells for about $335,000 in cash, stock and rework costs.

material agreement

The Winnemucca Mountain option was restated yet again, extending the remaining payment and share-issuance schedule out to 2018 and letting AHL Holdings take stock instead of cash at a steep 75% discount - the deal continued to be pushed further out rather than paid down.

capital raising announcement

Renamed Northern Minerals & Exploration Ltd., the company diversified into Texas oil and gas: a farm-out agreement with Grasshoppers Unlimited to earn 75% and 60% working interests in two Callahan County, Texas leases (an already-equipped shallow oil play and a reef prospect), for roughly $340,000 in combined cash, stock and drilling commitments.

material agreement

The Winnemucca Mountain option was renegotiated again: the interest available rose from 70% to 80%, but the cash and share price both increased and $1 million of payments were pushed out to the end of 2017 - more favorable terms on paper, bought with more deferral.

material agreement

The company struck a second, larger Nevada mining deal: an option to earn a 70% interest in the nearby Empress and Winnemucca Mountain claims from AHL Holdings and Golden Sands Exploration, requiring $1.7 million in staged payments through 2016 and at least $4 million of exploration spending.

material agreement

Now renamed Punchline Resources Ltd., the company completed its pivot into mining: it leased the Empress Property (27 unpatented gold claims in Esmeralda County, Nevada) from MinQuest for 20 years - $20,000/year plus work commitments escalating to $650,000/year by year seven, with MinQuest keeping a 3% royalty - while its president Ramzan Savji bought 60% control of the company from the prior officer for $30,000 of his own money.

asset acquisition disposition