Ely Gold Royalties Inc. (ELY:TSX.V; ELYGF:OTCQB) announced in a news release it agreed to acquire for CA$750,000, from a private person, all of the rights and interests to a 1% net smelter return (NSR) royalty on Coeur Mining's Lincoln Hill property.
The transaction is expected to close on or around June 1, 2019. At that time, Ely Gold will pay the seller CA$400,000 and then on Jan. 10, 2020, pay the remaining CA$350,000. Also, the company will issue the seller 500,000 common stock purchase warrants. Each full warrant will allow the seller to buy one share of Ely Gold common stock at CA$0.17 for two years after the closing.
Ely Gold's new NSR royalty on Lincoln Hill includes 97 unpatented claims and one patented lode claim. Lincoln Hill has a Measured and Indicated oxide resource of 285,000 ounces (285 Koz) of gold and 7.3 million ounces (7.3 Moz) of silver contained in 23.4 million tons of mineralized material, along with an Inferred oxide resource of 74 Koz of gold and 2.2 Moz of silver, as recorded in 2014.
Located in Pershing County, Nev., Lincoln Hill is adjacent to Coeur's Rochester mine. "As Coeur moves toward the permitting of the new, stage six leach pad at Rochester, the higher-grade Lincoln Hill ore will be in very close proximity," Ely Gold President and CEO Trey Wasser said in the release.
The Lincoln Hill property also includes 23 unpatented claims known as the Rosal claims, on which Ely Gold currently holds a 1.5% NSR.
Read what other experts are saying about:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Ely Gold Royalties. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. /p>