Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

News Update

TICKERS: ELY; ELYGF; I4U

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

Share on Stocktwits

Source:

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.

[NLINSERT]

Disclosure:
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.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
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.





Want to read more about Gold investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe