TSX-V:ELY
VANCOUVER, April 13, 2016 /CNW/ - Ely Gold and Minerals
Inc. (TSX-V:ELY) ("Ely" or the "Company") is
pleased to provide an update of its proposed acquisition of certain
assets of Nevada Eagle LLC ("Nevada Eagle"), a private U.S.
corporation, pursuant to a binding agreement (the "Agreement"),
announced in a news release on February 26,
2016.
Ely entered into the Agreement
with Nevada Eagle, to purchase its
portfolio of thirty-one, highly prospective mineral properties and
related assets, the ("Properties") located in Nevada and other western U.S. states. The
majority of the Properties are precious metal exploration projects
located in some of the most prolific and desirable gold trends in
Nevada, with fifteen of the
Properties located in the Walker Lane district of western Nevada.
Nine of the Properties are in the Cortez Trend, one in the
Austin-Lovelock Trend, one in the Carlin Trend, one in the Getchell
Trend and the balance are unique situations throughout Nevada and
surrounding U.S. states. Of the entire portfolio, eight of the
Properties are currently leased or optioned to third parties (the
"Third Party Agreements") and the assets acquired also include two
deeded royalties.
The Properties are primarily unpatented mining claims staked on
Bureau of Land Management or US Forest Service lands and, as such,
have no existing or legacy royalties, work commitments or lease
payments. Following the closing of the Agreement, Ely Gold, through
its wholly owned subsidiary, Nevada Select Royalty Inc. ("Nevada
Select"), will own 100% of twenty nine properties, 50% of two
properties, all Third Party Agreements pertaining to the Properties
and all deeded royalties. Several of these properties have had work
programs completed on them, which may potentially form the basis of
future NI 43-101 technical reports.
Nevada Eagle has a long history
of staking mineral properties, which are then leased or optioned
while retaining royalties. Mr. Jerry
Baughman, the managing member of Nevada Eagle, will join the Ely Gold management
team as President of Nevada Select. Mr. Baughman is a well-known
and respected Nevada geologist who has demonstrated his skill at
acquiring and monetizing quality prospects in a timely and cost
effective manner. In July 2007, Mr.
Baughman sold a portfolio of 54 properties to Gryphon Gold for
US$12,000,000.
Under the terms of the Agreement, Ely will pay Nevada
Eagle a total purchase price of US$895,600. The purchase price will be paid as to
US$445,600 in cash on closing, and as
to the remaining US$400,000 on the
second anniversary, together with 5% interest. The remaining
US$50,000 of the purchase price was
previously advanced to Nevada Eagle
in September 2015 for the staking of
certain mineral properties. The Company will also issue 3,000,000
purchase warrants to Nevada Eagle as
part of the Agreement. Each warrant will be exercisable to purchase
one Ely Gold share for C$.07 for two
years from the closing. The Agreement also provides for the mutual
settlement of all outstanding legal claims between Ely Gold and
Nevada Eagle (refer to February 5, 2016 news release). The Agreement is
an arm's length transaction and no finder's fees will be paid.
The closing of the transaction is expected to take place on or
about April 20, 2016. As previously
announced in a press release on March 11,
2016, the Company has received conditional acceptance from
the TSX Venture Exchange (the "TSX-V"). Completion of the
acquisition is subject to a number of conditions, including final
TSX-V approval. There can be no assurance that the acquisition will
be completed as proposed or at all.
About Ely Gold
Ely Gold is focused on the
acquisition, development, and marketing of North American precious
metal resource properties to maximize their acquisition value. The
Company's business model is to sell or option its portfolio
properties, while reserving royalties. Ely Gold is traded on the
TSX Venture Exchange ("ELY"). Additional information about Ely Gold
is available online at www.elygoldandminerals.com
On Behalf of the Board of Directors
Trey Wasser, President &
CEO
Forward-Looking Statements
This news release
contains statements concerning Ely Gold and Mineral's
acquisition, development, and marketing of North American
precious metal resource properties and the Company's intent to sell
or option portfolio properties, while reserving any royalties.
Such forward-looking statements or information are based on a
number of assumptions, which may prove to be incorrect.
Although Ely Gold and Minerals' believes that the
expectations reflected in such forward-looking statements or
information are reasonable, undue reliance should not be placed on
forward-looking statements because the Company can give no
assurance that such expectations will prove to be correct.
Forward-looking statements or information are based on current
expectations, estimates and projections that involve a number of
risks and uncertainties which could cause actual results to differ
materially from those anticipated by the Company and described in
the forward-looking statements or information. These risks and
uncertainties include, but are not limited to, risks associated
with geological, geometrical and geophysical interpretation and
analysis, the ability of the Company to obtain financing,
equipment, supplies and qualified personnel necessary to carry on
exploration, exploitation or acquisition of properties and the
general risks and uncertainties involved in mineral exploration and
analysis.
The forward-looking statements or information contained in
this news release are made as of the date hereof and the Company
undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Ely Gold & Minerals Inc.