Ely Gold & Minerals (ELY-T) Aug 15, '16 is pleased to announce its wholly-owned subsidiary, Nevada Select Royalty, Inc. has executed a purchase agreement for the sale of its 100% owned Mina Gold property located in Mineral County, Nevada to Gold Resource Corporation (GORO-NY) for US$1,000,000. Nevada Select will retain a net smelter royalty of separate and varying percentages on various claims on the Mina Gold property. Closing of the Agreement, 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 $6.53 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
trey@elygoldinc.com,
972-803-3087;
ir@elygoldinc.com,
647 964 0292 |
