The percentage stake encompasses net profits from the recovery and sale of minerals from specific unpatented mining claims in Nevada's Mineral County. It also includes bonus payments for each gold equivalent ounce (Au eq oz) after 115,000 that is placed on the leach pads at the Regent Hill project, also in Mineral County. (Gold equivalent ounces would consist of gold, silver, platinum and palladium.)
The per-ounce quarterly bonus payments will go into effect when the monthly average gold price per ounce hits or exceeds US$1,400. At that price, payments will start at US$5.775 per Au eq oz and, if the monthly average gold price exceeds US$1,800, go as high as US$29.05 per Au eq oz.
For the 15% interest, Ely Gold paid US$800,000 and issued 2 million share purchase warrants. Each warrant allows for the purchase of one common Ely Gold share at CA$0.43 for two years.
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