Ely Gold Announces Private Placement and Board Changes
February 26, 2010
Ely Gold & Minerals Inc. (the "Company") announces a proposed
non-brokered private placement consisting of up to 8,000,000 units (the
"Units") at a price of $0.50 per Unit, for gross proceeds of up to
$4,000,000 (the "Offering"). The Units will be comprised of one common
share and one-half of one share purchase warrant. One whole Warrant
will entitle the holder to purchase one common share for a period of one
year at a price of $0.75 per share.
The Company may, in appropriate circumstances, pay finder's fees
comprising cash and/or securities in connection with the Offering. The
Offering is subject to TSX Venture Exchange acceptance. All securities
issued pursuant to the Offering will be subject to a four-month hold
period from the closing date. The proceeds from the Offering will be
used to advance the mine permitting process and to generate a plan of
operations for exploration activities on the Company's Mount Hamilton
gold project and for general corporate expenses.
The Company would also like to announce that John Brownlie has agreed to
accept a position on the Company's Board of Directors, effective March
1, 2010 and that C.F. "Trey" Wasser III has been appointed to the
position of Executive Vice President of Corporate Development. Both Mr.
Brownlie and Mr. Wasser have extensive experience in the gold mining
sector as fund raisers and developers. Mr. Brownlie will replace J. Lal
Gondi, who is stepping down as a Director and CEO of the Company,
effective immediately. The Board of the Company wishes to thank Mr.
Gondi for his significant contributions to the development of the
Company. He was instrumental in recognizing and enhancing the value of
the Mt. Hamilton project by making key acquisitions in the project area
and by working with the property owners to ensure that the project was
more attractive for future development.
Mr. Brownlie has a long and distinguished career in the mining business,
most recently in his role as President and Chief Operating Officer of
Capital Gold Corporation since 2006, where he oversaw the development
and construction of the El Chanate open pit gold mine in Sonora Mexico,
which is currently producing 60,000 ounces of gold per year at one of
the lowest cash costs in the industry, and more recently steered the
company to a NYSE-AMEX listing. Mr. Brownlie has provided team
management for mining projects requiring technical, administrative,
political and cultural experience over his 28 year mining career. From
2000 to 2006, Mr. Brownlie was a consultant providing mining and mineral
related services to various companies including SRK, Oxus Mining plc
and Cemco Inc. From 1995 to 2000, he was the General Manager for the
Zarafshan-Newmont Joint Venture in Uzbekistan, a one-million tonne per
month heap leach plant which produced over 400,000 ounces of gold per
year. From 1988 to 1995, Mr. Brownlie served as the Chief Engineer and
General Manager for Monarch Resources in Venezuela, at both the El
Callao Revemin Mill and La Camorra gold projects.
Mr. Wasser, who is the President and Director of Research for Pilot
Point Partners, has been in the brokerage and venture capital business
for over 33 years. He spent 20 years as a bond salesman and trader with
Merrill Lynch, Kidder Peabody and Paine Webber. He specialized in
corporate cash management and his clientele included many Fortune 100
companies and institutional money managers. In 1993, he formed III-D
Capital LLC to assist early staged companies developing business plans
and securing venture capital financing. Today, Mr. Wasser is involved
in various consulting and finance activities for mining companies and
consults with FINRA and other regulatory agencies on a pro-bono basis.
The Company has granted incentive stock options to directors, officers,
and consultants of the Company to purchase 600,000 common shares of the
Company, subject to regulatory approval. The options are exercisable on
or before February 26, 2015 at an exercise price of $0.50 per share.
On Behalf of the Board of Directors
Signed "Stephen Kenwood"
For further information, please contact Ely Gold & Minerals Inc. at 604-488-1104.
Neither TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements including but
not limited to comments regarding the timing and content of upcoming
work programs, geological interpretations, receipt of property titles,
potential mineral recovery processes, etc. Forward-looking statements
address future events and conditions and therefore, involve inherent
risks and uncertainties. Actual results may differ materially from those
currently anticipated in such statements.