Ely Gold & Minerals Inc. (the "Company")
is pleased to announce that it has entered into a binding agreement
(the "Agreement") with Nevada Eagle LLC, a private U.S. corporation
("Nevada Eagle") to purchase its portfolio of thirty one highly
prospective mineral properties in Nevada and the Western U.S. (the
"Properties") and related assets. Most of the Properties are precious
metal exploration projects in some of the most desirable gold trends in
Nevada. Fifteen of the properties are in the prospective Walker Lane of
western Nevada. Nine of the properties are in the Cortez Trend, one in
the Austin-Lovelock, one in the Carlin Trend, one in the Getchell Trend
and the balance are unique situations throughout Nevada with a few in
contiguous states. Eight of the Properties are currently leased or
optioned to third parties (the "Third Party Agreements") and the assets
acquired include two deeded royalties.
The Properties are primarily unpatented mining claims staked on Bureau
of Land Management or US Forest Service lands and, as such, have no
existing royalties, work commitments or lease payments. After closing,
the Company, through its wholly owned subsidiary, Nevada Select Royalty
Inc. ("Nevada Select") will own 100% of twenty nine properties, 50% of
two properties, the Third Party Agreements and the deeded royalties.
Several of the properties have had recommended work programs completed
on them which will form the basis of future NI 43-101 technical reports.
Closing of the transaction is expected to take place on or about April
20, 2016 and is subject to TSXV acceptance of a filing to be made by the
Nevada Eagle has a long history of staking mineral properties which are
then leased or optioned while retaining royalties. Jerry Baughman, the
managing member of Nevada Eagle, will join the Ely Gold management team
as President of Nevada Select. Jerry is a well-known and respected
Nevada geologist who has demonstrated his skill at acquiring and
monetizing quality prospects in a timely and cost effective manner. In
July 2007, Jerry sold a portfolio of 54 properties to Gryphon Gold for
Under the terms of the Agreement, the Company will pay Nevada Eagle a
total purchase price of US$895,600. The purchase price will be paid as
to US$445,600 in cash on closing, and as to the remaining US$400,000 on
the second anniversary, together with 5% interest. The remaining
US$50,000 of the purchase price was previously advanced to Nevada Eagle
in September 2015 for the staking of mineral properties. Ely Gold will
also issue 3,000,000 purchase warrants to Nevada Eagle. Each warrant
will be exercisable to purchase one Ely Gold share for CAN$.07 for two
years from the closing. The Agreement also provides for the mutual
settlement of all outstanding legal claims between Ely Gold and Nevada
Eagle (February 5, 2016 news release). The Agreement is an arm's length
transaction and no finder's fees will be paid.
Trey Wasser, the Company's President & CEO commented on the
Agreement, "Combining this exceptional portfolio of properties with our
100% owned Green Springs asset transforms Ely Gold from a one project
company into a diversified exploration and royalty company. We are
pleased with the current Third Party Agreements and we intend to fully
adopt Nevada Eagle's business model working to option properties and
expand the royalty portfolio".
About Ely Gold
Ely Gold is focused on the acquisition, development, and marketing of North American precious metal resource properties to maximize their acquisition value. The Company's business model is to sell or option its portfolio properties, while reserving royalties. Ely Gold is traded on the TSX Venture Exchange ("ELY"). Additional information about Ely Gold is available online at www.elygoldandminerals.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.