TSX-V:ELY
VANCOUVER, May 4, 2016 /CNW/ - Ely Gold and Minerals
Inc. ("Ely Gold" or the "Company") (TSX-V:ELY
OTC:ELYGF) is pleased to announce that it has closed its
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. The Agreement
received notice of final acceptance from the TSX Venture Exchange
on May 2, 2016.
The Company entered into the Agreement with Nevada Eagle, to purchase its portfolio of
thirty-one, highly prospective mineral properties and related
assets, located in Nevada and
other western U.S. states. (the "Properties") Ely Gold will hold
the Properties and operate through its wholly owned Nevada
subsidiary, Nevada Select Royalty Inc. ("Nevada Select").
Jerry Baughman, Nevada Eagle's founder will join the Ely Gold
team as President of Nevada Select.
Trey Wasser, President and CEO of
Ely Gold stated, "We are very excited to be entering a new stage
of development at Ely Gold. With the Agreement completed, our
business model will now focus on developing a portfolio of highly
prospective, un-encumbered precious metals Properties. Ely Gold's
proven track record for enhancing projects through claim
consolidation, data compilation and permitting with federal
agencies, will now be scaled to the entire property portfolio. The
addition of Jerry's skills at identifying, acquiring and vending
properties will allow Ely Gold to become a premier vendor of
precious metal projects. Many of the Properties have not seen
modern exploration and we are currently experiencing a renaissance
of interest for exploration properties in the state of Nevada. Our
goal is to generate drill ready projects to be leased or sold while
retaining significant royalty interests. This model will allow us
to continue to acquire additional projects while generating cash
flow from lease/option payments and advance royalty
streams."
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. Eight of the Properties are
currently leased or optioned to third parties who are making option
payments and paying advance royalties to Nevada Select. 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. A
full list of the Properties is available on the Company's website
at www.elygoldandminerals.com Seven of the properties have
conflicts with previous claim staking or claim boundaries.
While the Company does not believe that any of these claims are
critically important to the current portfolio, it expects to
resolve these issues shortly through the BLM or the Interior Board
of Land Appeals. There is a risk that it may not successfully
resolve the conflicts, in which case the Company will lose its
claimed interests in those properties.
As part of the approval process with the TSX Venture Exchange,
the Company reports that it has filed on SEDAR (www.sedar.com), an
independent National Instrument 43-101 Technical Report, on the
WEEPAH GOLD PROJECT, Weepah, Esmeralda
County, Nevada, USA. The Technical Report dated April 15, 2016 is also available on Ely Gold's
website and was prepared by Barry James
Price, M.Sc., P.Geo., BJ Price Geological Consultants Inc.
who is a "qualified person" as that term is defined in NI
43-101.
The 100% owned Weepah project is located 20 miles southwest of
the town of Tonopah, Esmeralda County, Nevada, and has a historic
production from two open pits. The report identifies two high
priority targets based historic drill data.
In the Agreement, Nevada Eagle
and Nevada Select entered into an agreement, with a third party,
whereby it acquired five patented mining claims in Mineral County, Nevada in exchange for eight
unpatented claims in Modoc County,
California. These patented claims were added to forty three
unpatented claims purchased or staked by Nevada Eagle to consolidate the Mina Gold
project. Located on the Walker Lane in west central Nevada, Mina
Gold was most recently explored by Glamis
Gold in 1996. Nevada Select has also acquired significant
historic data on the Mina Gold project.
Jerry Baughman, President of
Nevada Select stated, "I am pleased to be a part of Ely Gold's
new and exciting business model. Our Mina Gold project is a great
example of how we are able to quickly consolidate claims and
generate fresh properties that have not seen exploration in the
current mining cycle. I look forward to working together and
successfully enhancing the current portfolio while focusing on
property submissions and acquisitions. We expect to be updating
stakeholders of Ely Gold and the analyst community on new
developments in the near future."
Under the terms of the Agreement, Ely will pay Nevada
Eagle a total purchase price of US$895,600. Upon closing, US$445,600 was paid in cash with US$400,000 due on the second anniversary,
together with 5% interest. The remaining US$50,000 of the purchase price was previously
advanced to Nevada Eagle in
September 2015 for the staking of
certain mineral properties. The Company has also issued 3,000,000
purchase warrants to Nevada Eagle as
part of the Agreement. Each warrant is exercisable to purchase one
Ely Gold share for C$.07 for two
years from the date of closing. The Agreement also provided for the
mutual settlement of all outstanding legal claims between Ely Gold
and Nevada Eagle (refer to
February 5, 2016 news release). The
Agreement has been filed on SEDAR. It was negotiated at arm's
length and no finder's fees were paid.
Ely Gold is pleased to announce that they have retained Investor
Relations Services Inc. ("IR.INC") to conduct investor relations
services for the Company. IR.INC is headed Ms. Joanne Jobin and is based in Ontario. IR.INC is dedicated to providing
professional investor relations, marketing and corporate
communications consulting services to select natural resource
industry clients. Ms. Jobin has over 25 years of investor
relations experience. She began her career in the fledgling
investor relations industry in 1987 with Barrick Gold, where she helped develop its early
investor relations and marketing programs. Since then she has
worked in the natural resources sector and managed the investor
relations, corporate affairs and communications programs for a
number of publicly traded companies.
Qualified Person
Stephen
Kenwood, P. Geo, is director of the Company and a Qualified
Person as defined by NI 43-101. Mr. Kenwood has reviewed and
approved the technical information in this press release.
About Ely Gold
Ely Gold is focused on developing
recurring cash flow streams through the acquisition, consolidation,
enhancement, and resale of highly prospective, un-encumbered North
American precious metals properties. Ely's property development efforts maximize
each property's potential for acquisition, while reserving
significant royalty interests. Additional information about
Ely Gold is available at the Company's website, 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.