Ely Gold Royalties Sells County Line Project to Gold Resource Corporation
March 12, 2018
Vancouver, British Columbia - (March 12, 2018) - Ely Gold Royalties 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 purchase agreement with Gold Resource Corporation (NYSE MKT: GORO) "Gold Resource"whereby Gold Resource has acquired a 100% interest in the County Line Project, (the "Agreement"). The total consideration is US$300,000 and Nevada Select will retain a net smelter returns royalty of 3% on the property (the "NSR").
Jerry Baughman, President of Nevada Select commented on the Agreement, "This is the third high-quality project we have sold to Gold Resource for their Nevada Mining unit. In
anticipation of receiving their final mine permit for the Isabella
Pearl Project, Gold Resource has acquired long lead-time equipment
including a new crushing plant as well as new radial stacking and
conveying equipment. They have also placed an order of an "ADR"
, desorption, regeneration) plant, which is over 95% complete and expected to be delivered in mid-2018.
Ely Gold holds royalties on the key exploration and expansion claims at
Isabella Pearl as well as royalties on the historic resources at Mina
Gold and County Line, both within hauling distance
Trey Wasser, President and CEO of Ely Gold stated, "This transaction provides another excellent example of our royalty business model. County Line will help Gold Resource to reach their near-term production goals.We now have 41 properties in our royalty and option portfolios that are all being explored by majors, mid-tier producers and highquality junior explorers. These portfolios are on track to produce $2,000,000 in revenue and $1,000,000 in cash flow in 2018."
are no work commitments or additional expenditures required and Nevada
Select will retain a 3% NSR on the Property. There is a one-mile area of
interest associated with the NSR. Gold Resource will have the right to
buy-down 1% of the NSR for an aggregate purchase price of $1,000,000.
About County Line
County Line property covers an area of approximately 429 hectares
(1,060 acres) consisting of 53 unpatented lode mining claims and one
unpatented placer mining claim in central Nevada's Walker Lane Mineral
Belt in Mineral and Nye counties, Nevada. Gold Resource staked 63
additional unpatented claims around the property to strengthen its land
position and exploration potential. The total land package consists of
939 hectares (2,320 acres) (the "
Property"). The property is
located within close proximity, approximately 14 miles north east, of
the Gold Resource's Isabella Pearl Project and becomes the fifth
property in the Gold Resource's Nevada Mining Unit. Nevada Select
acquired the County Line Claims through staking in 2017.
Property is part of the Paradise Peak collection cluster of high
sulfidation epithermal deposits. The district historically produced a
total of 1.5 million ounces of gold and 38.9 million ounces of silver.
The County Line open pit historically produced approximately 81,000
ounces of gold and 760,000 ounces silver. The Porphyry (East) Pit,
located approximately 2,500 feet south east of the County Line pit,
produced approximately 7,400 ounces of gold and 8,000 ounces silver.
While both open pits represent exploration targets, other targets
include "Newman Ridge" and the "Jackpot Zone".
Stephen 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 Royalties Inc.
Gold Royalties is an emerging royalty company with interests in 71
precious metal properties primarily in Nevada. 41 of these properties
are being explored by majors, producing mid-tiers and high quality
junior exploration companies. 21 properties are in the Company's royalty
portfolio and 20 properties are being purchased under option contracts.
All the Company's option properties will produce royalties, if
exercised. In 2018, the Company's property portfolio will generate over
$2,000,000 in revenue and positive cash flow estimated at $1,000,000.
Ely Gold is also actively purchasing existing third-party royalties. Ely
Gold maintains a strong cash position and a gold stock equity
portfolio. Ely Gold is well positioned with its current portfolio of 30
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.
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.