Ely Gold Options Gold Bar Project in Nevada to Fremont Gold
September 13, 2017
Vancouver, British Columbia - September 13, 2017 - Ely Gold & Minerals Inc. (TSXV: ELY) (OTC Pink: ELYGF) ("Ely Gold"or the"Company")through its wholly owned subsidiary, Nevada Select Royalty, Inc ("Nevada Select") is pleased to announce that it has entered into a definitive option agreement with Fremont Gold Ltd. (TSXV: FRE) ("Fremont")
through their wholly owned U.S. subsidiaries whereby Fremont can
acquire a 100% interest in the Gold Bar project, located in Eureka
County, Nevada. The total option amount (if completed) is US$1,000,000
and Nevada Select will retain a 2% net smelter returns royalty ("NSR").
The closing of the Option is subject to delivery of final documentation
which is expected in October 2017 (the "
The Gold Bar project consists of ninety-six (96) lode mining claims and twelve (12) patented claims (collectively the "Gold Bar Claims").
The property is located in the historic Gold Bar mining district within
the southern part of the Cortez Mineral Trend. Gold Bar is a historic
mine, formerly operated by Atlas Precious Metals which produced
approximately 286,354 ounces of gold in the late 1980's and early
1990's. Nevada Select acquired the Gold Bar Claims through staking and
by the purchase of the patented claims in two separate transactions.
the terms of the option agreement, the Company can earn a 100% interest
in the Property by making an initial payment of US$10,000, followed by:
$40,000 six months after the Closing Date
$100,000 one year after the Closing Date
$100,000 two years after the Closing Date
$100,000 three years after the Closing date
$200,000 four years after the Closing Date
$400,000 five years after the Closing Date (the "Final Option Payment")
In addition to the payments, the Company must pay advance royalty payments as follows:
$25,000.00 on the first through third anniversary of the Closing Date; and
$35,000.00 on the fourth anniversary of the Closing Date and on each anniversary thereafter.
are no work commitments or additional expenditures required other than
Fremont's obligation to maintain the underlying agreements and claim
maintenance fees per year of approximately US$20k. When the Final Option
Payment is made, Nevada Select will retain a 2% NSR on the Gold Bar
Claims. Fremont will have the right to buy-down 1% of the underlying
royalty on these key claims for $5,000,000. Nevada Select will retain a
1% NSR on those claims within a two-mile area of interest surrounding
the Gold Bar Claims. There is no buy-down on the area of interest claims
Trey Wasser, President and CEO of Ely Gold commented on the Option, "We are very pleased to complete this transaction with Fremont. Ely Gold has worked very hard diligently to consolidate the Gold Bar Property claims for the first time since mine production in the early 1990's.
The team at Fremont are proven asset builders and we are pleased to
have concluded the Option for cash while retaining a significant royalty
interest. This transaction will add to our current revenue stream.
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
accumulation and creation of royalty interests and option contracts on
precious metals properties. Currently focused in Nevada and the Western
United States, the Company's development efforts draw on an extensive
in-house geological data base to acquire and enhance an extensive
portfolio of unencumbered properties. Each property's potential for
acquisition is maximized through claim consolidation and data
enhancement to provide its partners with large drill ready projects. Ely
Gold's current portfolio contains 20 deeded royalties, 16 optioned
properties, and 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 may contain forward-looking statements including but not limited to comments regarding the due diligence and TSX Venture Exchange conditions to the closing of the Transaction, 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.