Ely Gold to Retain Chad Williams as a Strategic Advisor for the Northern Star Note Acquisition
May 3, 2011
Ely Gold & Minerals Inc. ("Ely Gold") is pleased to announce that it
has entered into an agreement with Chad Williams P.Eng to act as
strategic adviser to Ely Gold on the acquisition of the Senior Secured
Notes ("Notes") issued by Northern Star Mining ("NSM") as announced by
the Company on February 15, and March 4, 2011.
Mr. Williams was previously the CEO and President of Victoria Gold
Corp., a high-growth gold exploration and development company with
assets in North America. He has extensive experience as a highly-ranked
financial analyst in the gold sector and was also Head of Mining
Investment Banking at a Canadian brokerage firm. He is currently a
Director of two other mining companies. Mr. Williams is a professional
mining engineer and holds an MBA from McGill University. He is native of
"We are very pleased to have Chad's assistance in advancing this
exciting portfolio of strategically located properties in Quebec",
stated Ely Gold President & CEO Trey Wasser. "Chad was instrumental
in crafting Victoria's rapid growth, and his experience in the global
mining financial community, plus his deep understanding of the Abitibi
region makes him a strong addition to our team. His track record of
success and deep professional relationships ideally suits the kind of
honest exploration and development approach we intend to apply to the
"The Abitibi Region of Quebec truly remains one of the most prospective
regions in the world to explore for gold", said Mr. Williams, "and the
NSM land package is definitively well positioned in attractive geologic
Ely Gold announced on March 4, 2011 that it had entered into two
separate agreements giving it the right to acquire up to 65% of
$41,093,488 of the outstanding Senior Secured Notes ("Notes") issued by
Northern Star Mining ("NSM"). Under the referenced agreement, Ely Gold
will initially purchase $4,806,634 principal value of Notes (Value at
maturity: $6,609,121 plus accrued interest) for $4,806,634 in cash. Ely
Gold will also purchase an option to acquire an additional $14,375,034
in Notes (Value at maturity: $19,765,671 plus accrued interest) for
$17,860,681 in cash, exercisable until March 1, 2012, for $1,309,857.
The total cash due on closing under the agreements will be $6,616,491.
Both agreements remain subject to financing, definitive documentation
and required consents and approvals, including TSX Venture Exchange
approval, and to further due diligence by Ely Gold.
NSM holds several mineral properties in the Abitibi Gold Belt in Quebec
including the Malartic-Midway Property, as well as the Beacon Mill and
other plant and equipment used in its mining operations (the "NSM
Assets"). If the Note holders take possession of the NSM Assets, Ely
Gold will become a participating co-owner of the NSM Assets, and will
become manager and operator of the NSM Assets.
Further information on NSM and its assets, and the business case for the
acquisition of the Notes, is set out in Ely Gold's news release dated
February 15, 2011.
On Behalf of the Board of Directors
Signed "Trey Wasser"
Trey Wasser, President & CEO
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.