TSX-V:ELY
VANCOUVER, Aug. 12, 2016 /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 certain royalty interests from Golden Predator US
Holdings Corp. ("Golden Predator") and Resource Re Ltd. ("RRL").
Golden Predator and RRL are wholly owned subsidiaries of Till
Capital Ltd. ("Till"). RLL owns a 2% net smelter royalty ("NSR") on
the Uduk Lake property in British
Columbia. Nevada royalties
owned by Golden Predator include a 3% gross production royalty
("GPR") on the Bolo property, a .5% GPR on the Wood property and a
2% NSR on the Mina Gold property. Nevada Select currently owns 100%
of the claims covered by the Mina Gold royalty.
Terms of the Agreement include:
- Purchase by Nevada Select of RLL's Uduk Lake (2% NSR) royalty
interest;
- Purchase by Nevada Select of Golden Predator's Atlanta (3% NSR), Bolo (3% GPR) and Wood (.5%
GPR) royalty interests;
- Termination by Nevada Select, and Golden Predator of the Mina
Gold (2% NSR);
- As total consideration, Nevada Select will pay US$75,000 to Till.
Royalty Overview
Mina Gold The Mina Gold royalty property includes
five patented claims that were purchased by Nevada Select from
Nevada Eagle LLC (refer to news release May
4, 2016). Mina Gold is located in Mineral County, Nevada. The property was
explored by Glamis Gold in the
1990's and is typical of the epithermal gold/silver type deposits
on the Walker Lane Trend. Nevada Select also purchased eight
unpatented claims from Nevada Eagle LLC and staked 35 additional
claims, this year, thus consolidating the property for future
exploration. The termination of the Golden Predator royalty will
leave the Mina Gold property royalty free, except for a .5% NSR on
four of the unpatented claims.
Bolo/Wood The Bolo royalty property is northeast of
Tonapah in Nye County, Nevada and
the deposit at Bolo is a Carlin-style, sedimentary rock-hosted,
gold deposit similar to many deposits that occur in the Battle
Mountain-Eureka Trend. The Bolo royalty includes two unpatented
claims currently 100% controlled by Columbus Gold Corp.
("Columbus"). The Wood royalty includes 81 unpatented claims to the
north of the Bolo claims, also 100% controlled by Columbus.
Columbus drilled the Bolo property from 2007 to 2013. A 43-101
technical report was filed by Columbus on October 9, 2013.
Atlanta The Atlanta Gold
project is located in Lincoln County,
Nevada and is currently controlled by Meadow Bay Gold Corp.
("Meadow Bay"). The Atlanta
royalty includes 136 unpatented claims. Atlanta was mined as an operating open pit
mine from 1975 – 1985. The Project continues to benefit from
historical infrastructure – power, water and roads – all of which
remains in place. In March 2013,
Meadow Bay filed a National Instrument 43-101 technical report,
which included an initial resource estimate.
Uduk Lake The Uduk Lake royalty includes two mining
tenures that are 100% owned by Canarc Resource Corp. ("Canarc").
The project, now called Windfall Hills, is in the same geological
belt as the Blackwater/Davidson
project. Windfall Hills is 90 kilometers northwest of Blackwater,
which is now a flagship development project for New Gold Inc.
Trey Wasser, President and CEO of
Ely Gold stated, "This
transaction strengthens our growing royalty portfolio in
Nevada. More importantly, it
completes the consolidation of our Mina Gold property making it one
of our most valuable assets. This transaction will allow us to sell
or option Mina Gold while retaining a significant royalty interest.
We believe that the royalties in this Agreement include some
excellent exploration properties that are owned by important
emerging junior gold companies."
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.