Ely Gold Royalties Announces $1.43 Million Private Placement
December 6, 2018
Vancouver, British Columbia - Ely Gold Royalties Inc. (TSXV: ELY) (OTCQB: ELYGF) ("Ely Gold" or the "Company")is pleased to announce that it will undertake a non-brokered private placement offering (the "Offering"), consisting of up to 13,000,000 units (the "Units") at a price of C$0.11 per Unit, for gross proceeds of up to C$1,430,000.
Unit will be comprised of one common share and one non-transferable
common share purchase warrant. Each warrant will entitle the holder
thereof to purchase one additional common share for a period of five
years at an exercise price of $0.22. The exercise period for the
warrants may be accelerated by the Company to 30 days, if at any time
commencing four months and one day after the closing of the Offering,
the volume weighted average trading price of Ely Gold's common shares on
the TSX Venture Exchange exceeds $0.60 over a period of 20 consecutive
Clients and affiliates of the Sprott Group are expected to participate in the Offering.
fees may be payable in accordance with the policies of the Exchange.
All securities issued and issuable in connection with this Offering are
subject to a 4-month hold period in Canada from the closing date. The
Offering is subject to TSX Venture Exchange acceptance. The net
proceeds from the Offering will be used for project generative
activities and for general corporate expenses.
About Ely Gold Royalties
Gold Royalties Inc. is a Vancouver based, emerging royalty company with
development assets focused in Nevada, the Western US and Canada. Its
current portfolio includes 27 Deeded Royalties and 24 properties
optioned to third parties. All 51 of these properties are being explored
by third parties. Ely Gold's royalty portfolio includes producing
royalties, royalties on fully permitted mines, mines under construction
and development projects that are being permitted for mine construction.
The Company is actively purchasing existing third-party royalties for
its portfolio and all the Company's Option Properties will produce
royalties, if exercised. The royalty and option portfolios are currently
generating significant revenue. Ely Gold is well positioned with its
current portfolio of over 26 available properties to generate additional
operating revenue through option and sale transactions. The Company has
a proven track record of maximizing the value of its properties through
claim consolidation and advancement using its extensive, proprietary
data base. All portfolio properties are sold or optioned on a 100%
basis, while the Company retains net smelter royalty interests.
Management believes that due to the Company's ability to generate option
and royalty transactions, its successful strategy of organically
creating royalties, its equity portfolio and its current low valuation,
Ely Gold offers shareholders a low-risk leverage to the current price of
gold, exploration in Nevada and low-cost access to long-term mineral
Neither the 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
This press release contains certain "forward-looking statements"
within the meaning of Canadian securities legislation, including
statements regarding the timing and size of the proposed Offering, the
anticipated use of proceeds, and any stated plans for further near-term
exploration and development of the Properties. Although the Company
believes that such statements are reasonable, it can give no assurance
that such expectations will prove to be correct. Forward-looking
statements are statements that are not historical facts; they are
generally, but not always, identified by the words "expects," "plans,"
"anticipates," "believes," "intends," "estimates," "projects," "aims,"
"potential," "goal," "objective," "prospective," and similar
expressions, or that events or conditions "will," "would," "may," "can,"
"could" or "should" occur, or are those statements, which, by their
nature, refer to future events. The Company cautions that
Forward-looking statements are based on the beliefs, estimates and
opinions of the Company's management on the date the statements are made
and they involve a number of risks and uncertainties. Consequently,
there can be no assurances that such statements will prove to be
accurate and actual results and future events could differ materially
from those anticipated in such statements. Except to the extent required
by applicable securities laws and the policies of the TSX Venture
Exchange, the Company undertakes no obligation to update these
forward-looking statements if management's beliefs, estimates or
opinions, or other factors, should change. Factors that could cause
future results to differ materially from those anticipated in these
forward-looking statements include the risk of accidents and other risks
associated with mineral exploration, development and extraction
operations, the risk that its partners will encounter unanticipated
geological factors, or the possibility that they may not be able to
secure permitting and other governmental clearances, necessary to carry
out their stated plans for the Properties, the Company's inability to
secure the required TSXV acceptance required for the Offering, and the
risk of political uncertainties and regulatory or legal disputes or
changes in the jurisdictions where the Company carries on its business
that might interfere with the Company's business and prospects. The
reader is urged to refer to the Company's reports, publicly available
through the Canadian Securities Administrators' System for Electronic
Document Analysis and Retrieval (SEDAR) at
www.sedar.com for a more complete discussion of such risk factors and their potential effect.
news release does not constitute an offer to sell or a solicitation of
an offer to buy any of the securities in the United States of America.
The securities have not been and will not be registered under the United
States Securities Act of 1933 (the "1933 Act") or any state securities
laws and may not be offered or sold within the United States or to U.S.
Persons (as defined in the 1933 Act) unless registered under the 1933
Act and applicable state securities laws, or an exemption from such
registration is available.
Not for distribution to United States newswire services or for dissemination in the United States