TSX-V: ELY
VANCOUVER, Jan. 9, 2017 /CNW/ - Ely Gold &
Minerals Inc. ("Ely Gold" or the "Company") (TSX-V: ELY,
OTC: ELYGF) is pleased to announce its wholly-owned subsidiary,
Nevada Select Royalty, Inc. ("Nevada Select") has executed a
purchase agreement (the "Agreement") for the sale of its 100% owned
Isabella property located in Mineral
County, Nevada to Walker Lane Minerals Corporation, a wholly
owned subsidiary of Gold Resource Corporation (NYSE MKT: GORO)
(collectively "Gold Resource") for US$460,000. Nevada Select will retain a net
smelter royalty ("NSR") of 2.5% on the property. The claims, which
were acquired by Nevada Select through staking in September 2016, will consolidate and eliminate
many mine claim gaps along Gold Resource's Isabella Pearl
mineralized trend. Closing of the Agreement (the "Closing") has
received Securities Exchange Commission approval and is expected
early this week.
Terms of the Agreement include:
- a total sale price of US$460,000
to be paid, at Closing, as follows:
- US$100,000 cash;
- US$60,000 cash as a one-time
advance royalty payment;
- US$300,000 in Gold Resource
restricted common stock, which equated to 59,642 shares issued at
the closing price on January 6, 2017
of $5.03 per share;
- Nevada Select will retain a 2.5% NSR on 153 unpatented mining
claims;
- Gold Resource will receive Isabella property deeds at Closing,
and will own 100% of all 153 claims.
Terms of the NSR retained by Nevada Select include:
- a 2.5% NSR on 153 unpatented claims;
- Gold Resource has the option to buy-down 0.5% of the NSR for
US$500,000;
- The NSR will include a 2-mile area of interest ("AOI") on
claims not already held by Gold Resource in their Isabella Pearl
property package;
- The AOI royalty will be 2% and Gold Resource can buy-down 1%
for US$1,000,000.
The Isabella property covers an area of approximately 2700 acres
consisting of 153 unpatented mining claims in central Nevada's Walker Lane Mineral Belt. The claims
are all contiguous to Gold Resource's 341 Isabella Pearl claims
which they acquired in August of 2016 from an unrelated party. Gold
Resource has retained several engineering firms out of Reno Nevada for additional engineering work,
and is finalizing the Company's in-house mine scheduling/capital
expenditure requirement estimates for the project and the
resubmittal of the Environmental Assessment (EA) to the BLM for a
mining operations permit at Isabella Pearl.
Trey Wasser, President and CEO of
Ely Gold stated, "We are
extremely pleased to complete our second transaction with Gold
Resource and we hope to continue this partnership as they expand
their Nevada operations. The
Isabella claims were staked in September
2016 by Nevada Select. This transaction allows Gold Resource
to consolidate properties along a very exciting mineralized trend
in Nevada. The Isabella property
adds an extremely valuable asset to our royalty portfolio"
About Ely Gold
Ely 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. Additional
information about Ely Gold is
available at the Company's website, at www.elygoldinc.com
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.
On Behalf of the Board of Directors
Trey Wasser, President &
CEO
Forward-Looking Statements
This news release
contains statements concerning Ely
Gold and Mineral's
acquisition, development, and marketing of North American
precious metal resource properties and the Company's intent to sell
or option portfolio properties, while reserving any royalties.
Such forward-looking statements or information are based on a
number of assumptions, which may prove to be incorrect.
Although Ely Gold and
Minerals' believes that the expectations reflected in such
forward-looking statements or information are reasonable, undue
reliance should not be placed on forward-looking statements because
the Company can give no assurance that such expectations will prove
to be correct. Forward-looking statements or information are based
on current expectations, estimates and projections that involve a
number of risks and uncertainties which could cause actual results
to differ materially from those anticipated by the Company and
described in the forward-looking statements or information. These
risks and uncertainties include, but are not limited to, risks
associated with geological, geometrical and geophysical
interpretation and analysis, the ability of the Company to obtain
financing, equipment, supplies and qualified personnel necessary to
carry on exploration, exploitation or acquisition of properties and
the general risks and uncertainties involved in mineral exploration
and analysis.
The forward-looking statements or information contained in
this news release are made as of the date hereof and the Company
undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Ely Gold & Minerals
Inc.
