Ely Gold Royalties (TSX-V:ELY, OTC:ELYGF) Announces Closing of Additional Claims at Producing Gold Bar Mine, Nevada
March 30, 2020
Lease Claims Include a 2% Royalty
Vancouver, British Columbia, March 30, 2020 - Ely Gold Royalties Inc. (“Ely Gold” or the “Company”) (TSX-V:ELY, OTC:ELYGF) through its wholly owned subsidiary, Nevada Select Royalty, Inc (“Nevada Select”) is pleased to report that it has closed the purchase agreement and lease assignments (the “Agreement”) announced in February 2020 (see news release dated February 12, 2020).
The Agreement was with a private individual (the “Seller”) whereby Nevada Select purchased eight unpatented mining claims in Eureka County, Nevada (the “Claims”). The Claims are leased to a subsidiary of McEwen Mining Inc. (“NYSE” and “TSX:MUX” or “McEwen”) and the Agreement included an assignment of the leases to Nevada Select.
The Agreement Under the terms of the Agreement, Ely Gold has:
purchased two HNT Claims and assumed the corresponding lease;
purchased six JAM Claims and assumed the corresponding lease;
paid the seller US$125,000 at Closing; and
issued 100,000 Ely Gold common share warrants to the Seller (the “Warrants”).
The Warrants will expire two years from Closing and each Warrant will allow the Seller to purchase one share of Ely Gold common stock at a price of CAN$0.77. The annual lease payment covering the HNT Claims is US$5,000 and the annual lease payment covering the JAM Claims is US$7,000. Both leases provide for a 2.0% net smelter returns royalty at current gold prices.
Trey Wasser, President and CEO of Ely Gold commented, “We believe that both the HNT and JAM Claims represent potential resource expansion potential for McEwen Mining’s production at their Gold Bar Mine.This transaction now provides Ely Gold with a total of six properties and royalties at or near the Gold Bar Mine.”
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. Ely Gold Royalties Inc. is a Vancouver-based, junior royalty company with development assets focused in Nevada and Quebec. Its current portfolio includes 43 royalties and 19 properties being sold to third parties. Ely Gold’s royalty portfolio includes producing royalties, fully permitted mines and development projects that are at or near producing mines. The Company is actively seeking opportunities to purchase existing third-party royalties for its portfolio and all the Company’s option properties are expected to 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 30 available properties to generate additional operating revenue through option and sale agreements. 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 royalty interests. Management believes that due to the Company’s ability to generate third-party royalty agreements, 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 and low-cost access to long-term mineral royalties.
On Behalf of the Board of Directors Signed "Trey Wasser" Trey Wasser, President & CEO
FORWARD-LOOKING CAUTIONS: This press release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, including statements regarding its current assets, Company acquisitions of additional royalty interests, and the requirement for TSX Venture Exchange approvals.These matters are subject to certain risks and uncertainties. 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 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 risks that the Company may not secure the required regulatory approvals, including the acceptance of the TSX Venture Exchange, and the Company may not be able to identify suitable new royalty acquisitions, 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.
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 release.