Corporate Overviewupdated March 2012
Teryl Resources Corp. engaged in the acquisition, exploration and development of natural resource properties. We currently have mineral property and oil and gas interests in Alaska, Texas and Kentucky.
We are a reporting issuer in British Columbia and Alberta and trade on the TSX Venture Exchange (the ("TSX.V") under the symbol "TRC". We are also listed on the OTC BB under the symbol "TRYLF".
Our main exploration and development work over the last several years has taken place on the Gil claims, a gold prospect located in the Fairbanks Mining District, Alaska.
Mineral and Exploration Properties
- West Ridge Claims, Fairbanks Mining District, Alaska
We earned a 100% in the West Ridge mineral claims, comprising approximately 5,200 acres, located in the Dome Creek area of the Fairbanks district of Alaska, which claims are subject to a 1% net smelter return to the State of Alaska. The West Ridge property adjoins Kinross Gold Corp.'s True North gold deposit and lies approximately eight miles northwest of the producing Fort Knox gold mine. During the year ended May 31, 2011, we expended $8,165 (2010 - $Nil) on exploration expenditures on the West Ridge property. During the six months ended November 30, 2011 we incurred staking cost of $4,950 on the West Ridge Claims. During the year ended May 31, 2011, we did not write off any exploration and development expenditures; during the year ended May 31, 2010, we wrote off cumulative exploration and development expenditures of $661,615, because during 2010 we did not carry out any exploration work. As we announced on December 6, 2011, the assessment work and rental fees were completed for 2011.
- Fish Creek Claims, Fairbanks Mining District, Alaska
In March 2002, we acquired from Linux Gold Corp., a company with common directors, an option to earn a 50% interest in the thirty Fish Creek claims, located in the Fairbanks Mining District in Alaska, by expending $500,000 US within three years and the issuance of 200,000 common shares, which shares were issued in December 2002. An additional 100,000 shares were issued in February 2007 in payment for an extension of the date on which expenditures were required to be completed to March 5, 2007, which dates was extended to March 5, 2012.
Linux Gold Corp. will retain a 5% net royalty interest until we pay $2,000,000 US and/or back in for a 25% working interest prior to commencement of production. During the year ended May 31, 2010, we wrote off our cumulative exploration and development expenditures of $111,947 entirely, since the claims were not explored. We did not incur exploration and development expenditures on Fish Creek Claims during the year ended May 31, 2011 or the six months ended November 30, 2011.
On October 1, 2011 the Company and Linux further amended the agreement to extend the option agreement to March 5, 2012.
On December 1, 2011 the Company and Teryl further amended the agreement to include the following terms which are subject to regulatory approval:
- Teryl will apply $75,000 owed by the Company to Teryl towards the above stated minimum exploration budget of US$500,000;
- Teryl has an option to pay the expenditures for the Fish Creek property in cash in lieu of the exploration costs to the Company; and
- The term of the agreement is extended to March 5, 2013.
The Company will continue to maintain the option agreement and will commence its exploration program once more funding is available.
As we announced on December 6, 2011, the assessment work and rental fees were completed for 2011.
- Silverknife Property, Laird Mining Division, B.C., Canada
On March 21, 2012, Teryl Resources Corp. released news regarding the Silverknife claims permit application. The exploration program for this summer is for $360,000 consisting of diamond drilling of the discovery zone. Up to 29 ounces of Silver and 17% lead zinc were discovered between 1983-1985.
Pursuant to agreements with Reg Technologies Inc. ("Reg"), SMR Investments Ltd. ("SMR"), Rapitan Resources Inc. ("Rapitan"), and Chevron Minerals Ltd. ("Chevron"), Teryl acquired a 30% working interest and a 10% net profit royalty from Rapitan in the Silverknife mineral claims, situated in the Liard Mining Division in the Province of British Columbia. Subject to a 1%Net Smelter Return to SMR.
On December 21, 2010 we announced our purchase of an additional 10% NPI in the Silverknife property for consideration of 200,000 common shares (issued on January 25, 2011), resulting in our total ownership of 30% working interest and a 10% net profit interest of the property.
As we announced on December 6, 2011, the assessment work and rental fees were completed for 2011. Exploration work is planned for calendar year 2012.
- Gil Claims, Fairbanks Mining District, Alaska
Until December 19, 2011 we owned a 20% working interest in 237 claims located in the Gilmore dome area of Fairbanks district of Alaska, known as the Gil mineral property.
On September 21, 2011 we entered into a letter of intent ("LOI") to sell all of its remaining 20% interest in the Gil Venture property to Fairbanks. In accordance with the terms of the LOI, Fairbanks grants to the Company a production royalty equal to 1% of net smelter returns on all production from the property up to $15,000,000, after which the royalty is equal to 0.5% of the net smelter returns on all production from the property. At closing Fairbanks will pay the Company US$2,500,000 as an advance payment of the production royalty. An additional advance payment of royalty of US$1,500,000 will be paid to the Company upon commencement of commercial production from a mine constructed on the property. The transaction was closed with Asset Purchase Agreement effective December 19, 2011 upon which the Company received the advance payment of $2,500,000.
Oil and Gas Properties
- Fayette and Burleson Counties, Texas
We own a 6.5% working interest (4.680% net revenue interest) in the Peters No. 1 Well, in Fayette County, Texas, and a 7.5% working interest (5.79375% net revenue interest) in each of the C-S #1, Jancik #2 and Herrmann #4 wells, located in Burleson County, Texas. During the six months ended November 30, 2011, revenues of $14,050 were recorded from the Texas properties compared to revenues of $17,880 for the same period of 2011. The carrying cost of these wells has been completely depleted.
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