Ely Gold Announces Closing of Private Placement and Final Payment for Mt. Hamilton Acquisition
December 3, 2013
Ely Gold & Minerals Inc. ("Ely Gold" or the "Company") is
pleased to announce that the Company has closed the previously announced
non-brokered private placement of 13,571,354 common shares of the
Company, all of which were subscribed for by Solitario Exploration &
Royalty Corp. (NYSE: XPL, TSX: SLR) ("Solitario"), at the price of
C$0.10 per share, for gross proceeds of CAN$1,357,135 (the "Financing").
After the acquisition of the shares in this private placement, Solitario
now holds 15,732,274 common shares of Ely Gold, or approximately 19.6%
of their common shares. The proceeds from the Financing have been used
to fund the final payment of US$1,300,000 due to Augusta Resource
Corporation (TSX: AZC) ("Augusta"), completing the acquisition of the
Mt. Hamilton project pursuant to the amendment to the Company's November
15, 2007 share purchase agreement with Augusta announced by the Company
on November 20, 2013.
No warrants were issued and no finder's fees were payable in connection
with the Financing. All shares issued pursuant to the Financing are
subject to a four-month hold period expiring on March 28, 2014.
Mt. Hamilton LLC
Solitario and Ely Gold formed the Mt. Hamilton LLC ("MH-LLC"), a limited
liability company which holds 100% of the Mt. Hamilton project assets
under an Operating Agreement ("MH-Agreement"). Per the terms of the
MH-Agreement, DHI-US, Ely Gold's wholly owned US subsidiary, has a 20%
interest in the MH-LLC and Solitario has an 80% interest.
Further information on the Mt. Hamilton project and the Company's
agreements with Augusta and Solitario are available under the Company's
profile on SEDAR at www.sedar.com.
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.