Ely Gold Announces Closing of Platoro West Transaction
June 23, 2017
Vancouver, British Columbia, June 23, 2017 - Ely Gold & Minerals Inc (TSXV: ELY) (OTC Pink: ELYGF)('Ely Gold' or the 'Company')is pleased to announce the closing of the definitive purchase and option agreement announced on May 4, 2017, (the 'Agreement') with Platoro West Incorporated ('Platoro West'), a privately held Nevada Corporation, and William Sheriff ('Sheriff'). Ely Gold, through its wholly owned subsidiary Nevada Select Royalty, Inc. ('Nevada Select'),
has purchased Platoro West's portfolio of 23 highly prospective mineral
properties in Nevada and the western United States (the '
Properties'), a portfolio of 8 deeded royalties in Nevada (the 'Royalty Portfolio')
and legal and beneficial ownership of geological information covering
precious metals properties throughout the western United States (the '
Effective upon closing, Sheriff has been appointed to the Board of
Directors of Ely Gold. Sheriff is the founder and currently Executive
Chairman of Golden Predator Mining Corp.
Nevada Select has fully
exercised its option and has acquired 100% of 22 Properties, 50% of one
Property and 100% of the Royalty Portfolio. The Properties are mainly
unpatented mining claims staked on Bureau of Land Management or U.S.
Forest Service lands and have no existing royalties, work commitments or
lease payments. Most of the Properties are precious metal exploration
projects in some of the most desirable gold trends in Nevada. One of the
Properties is in New Mexico and two are in Arizona. Two of the
Properties are currently leased or optioned to third parties and are
being actively explored. The Royalty Portfolio includes eight deeded
royalties on properties currently being developed by third parties. All
of the underlying properties in the Royalty Portfolio are in Nevada and
are precious metals assets, with the exception of the Quartz Mountain
property currently being developed by Alamos Gold Inc., which is in
eastern Oregon. Current annual lease and advance royalty revenue to
Nevada Select totals US$97,000.
The Data Base has been described
as one of the largest privately held data bases in the world. The Data
Base includes historic exploration and production data from Atlas Gold
Mining Inc., UV Industries, Inc., USSRAM (U.S. Smelting and Refining and
Mining Company and Union Carbide Corporation. Most of the hard copy
data has been scanned and cataloged. The Company is also pleased to
announce the opening of its Reno office and warehouse where all the data
will be consolidated and cataloged.
Trey Wasser, the Company's
President & CEO commented, 'Acquiring this exceptional portfolio of
properties and royalties, while bringing Bill Sheriff onto the team, is
truly transformational for Ely Gold. Combining our extensive data base
with Bill's will create a very valuable asset and an incredible tool for
evaluating properties. As Bill has successfully moved his focus north,
his Properties have been relatively idle. The properties, leases and
royalties are a perfect fit for us not only in location, but in
structure, as some of the assets are providing significant cash flow
from lease or advance royalty payments.'
Sheriff added, 'I am
looking forward to combining all of our strengths to propel Ely Gold to
the forefront of Nevada exploration and development. With the combined
portfolio, and this team's proven property acquisition prowess, I
believe we will be embarking on a great opportunity to build Nevada's
next quality royalty and property generator.'
Highlights of the Properties include:
unpatented mining claims in Esmeralda County, Nevada known as the
Castle Black Rock Property ('Castle') currently leased to Columbus Gold
Corporation ('Columbus') with a retained 2% NSR and annual advance
minimum royalty payments. The Property is located approximately eight
miles (13 km) south of Columbus' Eastside gold project. Gold
mineralization at Castle is localized in a large east-northeast trending
structural zone that parallels highway US 6 and which also contains the
past producing Boss Gold Mine. The faults in the structural zone
traverse the entire claim block and have limited drilling outside the
known resource areas. The historic mineralization at Castle is covered
by shallow alluvium, only 10-30 meters thick.
percent of 247 unpatented mining claims in Washoe County, Nevada known
as the Hog Ranch Property ('Hog Ranch') currently leased to Hog Ranch
Minerals Inc. Hog Ranch is a large gold-bearing district that contains
high-grade gold mineralization within quartz-adularia banded veins
similar in age, texture and mineralogy to the veins at the Sleeper,
Midas and Ivanhoe gold projects located in northern Nevada. Shallow
disseminated or stock-work mineralization remains unexploited in and
around all of the pits in addition to the relatively untested high-grade
feeder veins below the pits.
The Royalty Portfolio includes:
NSR on 7 unpatented mining claims on the interior of the Golden Sunrise
Property currently operated by Eurasian Minerals, Inc.
on one patented mining claim and 60 acres of deeded land lying along the
Getchell fault in Humboldt County Nevada currently part of the larger
Turquoise Ridge Mine property operated by Barrick Gold Corporation.
2% NSR on the Antelope Springs Property in Pershing County, Nevada currently operated by Pershing Gold Corporation.
of a sliding scale NSR on the Tuscarora Property in Elko County, Nevada
currently operated by Novo Resources Corp. Nevada Select now owns 100%
of the Tuscarora Royalty
0.25% NSR on Quartz Mountain Project in Lake County, Oregon currently operated by Alamos Gold Inc.
2% gross revenue royalty on the Pilot Mountain Tungsten Project in Mineral County currently operated by Thor Mining PLC.
1.5% NSR on 23 Rose Claims in Pershing County, Nevada currently operated by Rye Patch Gold Corp.
2% NSR on Scossa Property in Pershing County, Nevada currently operated by Romios Gold Resources Inc.
Kenwood, P. Geo, is director of the Company and a Qualified Person as
defined by NI 43-101. Mr. Kenwood has reviewed and approved the
technical information in this press release.
About Ely Gold
Gold is focused on developing recurring cash flow streams through the
acquisition, consolidation, enhancement, and resale of highly
prospective, un-encumbered North American precious metals properties.
Ely's property development efforts maximize each property's potential
for acquisition, while reserving significant royalty interests. The
Company's current portfolio contains 17 optioned properties, 15 deeded
royalties and over 24 properties available for sale. Additional
information about Ely Gold is available at the Company's website, at
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 contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. This news release may contain forward-looking statements including but not limited to comments regarding the timing of the upcoming purchase of Properties, Royalty Portfolio and Data Base, appointment of Sheriff to the Board of Directors, option to purchase Option Properties, timing of the Closing and payment of purchase price, 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. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.