Ely Gold concludes agreement to purchase 100% of the Green Springs property, White Pine County, Nevada
February 8, 2013
Ely Gold & Minerals Inc. ("Ely Gold") is pleased to announce
that, through its wholly owned subsidiary DHI Minerals (US) Ltd ("DHI"),
it has entered into a definitive agreement (the "Agreement") with
Palladon Ventures ("Palladon") TSX-V: PLL to purchase 100% of 76
unpatented mining claims in White Pine County in eastern Nevada ("Green
Springs") for $300,000 cash.
Green Springs covers an area of 1498 acres and lies approximately 5
miles south of Ely Gold's Mt Hamilton project which is currently in the
permitting process for mine development. The Mt Hamilton Project is
being managed by Solitario Exploration & Royalty Corp.
("Solitario"); NYSE MKT: XPL; TSX: SLR, under a joint venture agreement
with Ely Gold whereby Solitario owns 80% and Ely Gold owns 20%. The
Green Springs property is located 14 miles southeast of Midway Gold's
("Midway") NYSE: MDW Pan Deposit which is in the permitting process for
mine development and 7 miles southeast of Midway's Goldrock project and
10 miles northwest of Pilot Gold's; TSX: PLG Griffon project. The mining
claims at Green Springs were first staked by U.S. Minerals Exploration
Company ("USMX") in 1979. USMX mined the property for gold as an open
pit heap leach operation from 1988 to 1990.
The Green Springs Agreement contains standard terms and conditions,
including due diligence results satisfactory to Ely Gold. To ensure
acquisition of a 100% interest, Ely Gold has arranged for termination of
an existing option on the Green Springs claims, prior to closing, for
$50,000. The claims will be acquired subject to a 2% NSR.
Prior to signing the Agreement Ely Gold acquired a mining lease and 100%
purchase option on two mining claims contiguous to the Green Springs
Property (the "Cox Claims"). The lease on the Cox Claims has a term of
10 years with escalating advance royalty payments and a 100% purchase
option. The first year advance royalty payment was $13,000 and included a
significant amount of the historic drill data and production records
from USMX. Ely Gold has the option to purchase the claims for an amount
equal to $200,000 less the aggregate of the annual advance royalty
payments made prior to the date of exercise. Title will be taken
subject to an annual advance royalty of $25,000 until commencement of
commercial production, after which a 2% NSR will be payable (after
recovery of advance royalties and subject to a buy-down option for 1%
for $500,000 in favour of Ely Gold).
"We are very excited to secure a 100% interest to these properties in
what has become a prime development area of Nevada", stated Trey Wasser,
Ely Gold's President & CEO.
John Brownlie, Ely Gold's Executive Chairman commented, "The
consolidating of this claim grouping at the site of past gold mining and
the availability of the historical data makes this a very attractive
project for Ely Gold as Mt. Hamilton progresses through the permitting
This press release has been read and approved by Stephen Kenwood, P.
Geo, a director of the Company and the Company's Qualified Person.
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.