Ely Gold & Minerals Inc. (the "Company") announced on February 23,
2010 that it had entered into an agreement (the "Centennial Agreement")
to amend a lease agreement (the "Lease") with Centennial Minerals
Company LLC ("Centennial") relating to the Centennial property, which
comprises part of the Company's Mount Hamilton project in Nevada. Now,
to facilitate equity financing of the next stage of work towards the
development of the Centennial property, Centennial has agreed to amend
the Lease to eliminate the cash payments, the royalty reduction and the
put and call options provided for in the Centennial Agreement, and to
replace them with options (the "Royalty Reduction Options") in favour of
the Company to buy down the Centennial royalty by 3.25% at any time
prior to commencement of commercial production on payment of
US$3,500,000, and to buy down the Centennial royalty by an additional
1.75% at any time prior to the first anniversary of the date of
commencement of commercial production on payment of an additional
US$1,500,000. If all options are exercised, the NSR on the Mt. Hamilton
property will be capped at 3.0%.
This amendment to the Lease reduces the Company's near term financial
obligations by US$4,500,000, with the result that available funds will
be used to finance work programs rather than third party payments. To
protect Centennial, the Royalty Reduction Options will be rendered void
if any person acquires more than 20% of the issued and outstanding
voting shares of Ely pursuant to a "takeover bid" which is not supported
by the board of directors of Ely, or if the acquisition of DHI Minerals
Inc. from Augusta Resource Corporation is terminated.
The Company has filed its audited financial statements and Management
Discussion & Analysis for its financial year ended December 31,
2009. Those statements and the MD&A may be viewed on SEDAR at
On Behalf of the Board of Directors
Signed "Stephen Kenwood"
Stephen Kenwood, President
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.