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News Update


Firm to Acquire Royalty on Producing Gold Mine in Nevada
News Update

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The cost is CA$8 million, payable by issuing common corporate shares.

Ely Gold Royalties Inc. (ELY:TSX.V; ELYGF:OTCQB) announced in a news release it agreed to purchase from Eric Sprott a 0.50% net smelter returns (NSR) royalty, the Target Royalty, on the gold-producing Jerritt Canyon mine in Elko, Nevada.

Ely Gold already holds a per ton royalty interest on the Jerritt Canyon processing facilities.

According to the agreement, for the Target Royalty, Ely Gold will pay Sprott CA$8 million by issuing 12,698,413 Ely Gold common shares at $0.63 per share. Also, Ely Gold will pay Medalist Capital a finder's fee amounting to 1% of the transaction price and 300,000 Ely Gold share purchase warrants. For three years, each warrant will be exercisable for one Ely Gold share at CA$0.63 apiece.

Following the closing of this transaction, Sprott will own about 16.2% of outstanding Ely Gold common shares on a nondiluted basis and roughly 28.3% on a partially diluted basis. The company noted that Sprott has agreed not to exercise any portion of his warrants if doing so would mean his holdings exceed 19.9% of outstanding Ely Gold voting shares.


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.
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