TSX-V:ELY
VANCOUVER, Aug. 15, 2016 /CNW/ - Ely Gold & Minerals Inc. ("Ely Gold"
or the "Company") (TSX-V: ELY, OTC: ELYGF) is pleased to
announce its wholly-owned subsidiary, Nevada Select Royalty, Inc.
("Nevada Select") has executed a purchase agreement (the
"Agreement") for the sale of its 100% owned Mina Gold property
located in Mineral County, Nevada
to Gold Resource Corporation (NYSE MKT: GORO) ("Gold Resource") for
US$1,000,000. Nevada Select will
retain a net smelter royalty ("NSR") of separate and varying
percentages on various claims on the Mina Gold property. Closing of
the Agreement (the "Closing"), which is subject to Securities
Exchange Commission approval, is expected to be on or about
August 19, 2016.
Terms of the Agreement include:
- a total sale price of US$1,000,000 to be paid, at Closing, as follows:
- US$150,000 cash as a one-time
advance royalty payment;
- US$850,000 in Gold Resource
restricted common stock, which equated to 130,000 shares issued at
the closing price on August 12, 2016
of $5.63 per share;
- Nevada Select will retain various NSR's on the Mina Gold
property;
- Gold Resource will receive Mina Gold property deeds at Closing,
and will own 100% of all 48 claims.
Terms of the NSR retained by Nevada Select include:
- a 3% NSR on five patented claims;
- a 2% NSR on thirty-nine unpatented claims, staked by Nevada
Select;
- a 1.5% NSR on four unpatented claims, purchased by Nevada
Select with existing .5% NSR;
- a 2% NSR on additional unpatented claims staked by Gold
Resource within a one-mile area of interest;
- Gold Resource has the option to buy-down 1% of the NSR on the
patented claims for US$1,000,000;
- Gold Resource has the option to buy-down .5% of the NSR on all
unpatented claims for US$500,000.
The Mina Gold property covers an area of approximately 825 acres
consisting of 43 unpatented claims and five patented claims in
central Nevada's Walker Lane
Mineral Belt located in Mineral
County, approximately seven miles northeast of Gold
Resources' Gold Mesa property. Gold mineralization at Mina Gold is
hosted by epithermal quartz veins occurring along fault zones in
volcanic host rock outcropping at the surface.
Trey Wasser, President and CEO of
Ely Gold stated, "We are
extremely pleased to complete our second transaction with Gold
Resource and we hope to continue this partnership as they expand
their Nevada operations. The Mina
Gold project is an exemplary demonstration of Ely Gold's new business model of acquisition and
packaging of properties while retaining NSRs. Our team skill-sets
for project development allow us to generate new exciting
properties and attract quality mining partners. We anticipate
making further sales and accretive acquisitions to add to our
current platform in Nevada"
Nevada Select has successfully consolidated the Mina gold
property by completing the following transactions:
- purchased eight unpatented claims from Nevada Eagle LLC "NEL"
(refer to press release dated May 4,
2016);
- under the terms of the NEL purchase, the Company negotiated a
property exchange with Timberline Resources Corp. for the five Mina
patented claims;
- staked 35 additional claims in April
2016;
- negotiated the termination of the underlying 2% NSR with Till
Capital (refer to news release dated August
12, 2016);
- acquired and organized a large historical data base.
Jerry Baughman, President of
Nevada Select, commented, "Our Mina Gold project is an excellent
example of how we are able to quickly consolidate claims and
generate fresh properties that have not seen exploration in the
current mining cycle. Our ability to acquire properties through
acquisition and staking, coupled with Ely
Gold's capacity to secure capital financing, puts Nevada
Select in a unique position to offer 100% ownership to our
partners while securing and retaining royalties. We
look forward to updating our shareholders with additional
Nevada-based transactions in
the near future.
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.elygoldinc.com
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.
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.