Ely Gold Royalties Inc. (ELY:TSX.V; ELYGF:OTCQX; A2JSL0:FSE) announced in a news release that its subsidiary, Nevada Select Royalties, agreed to buy 48 unpatented lode mineral claims spanning one mile of the Olympic Gold property in Nevada's Mineral County from Great Western Mining for $150,000.
Along with the mineral claims, Ely Gold will gain, once the transaction closes, a 3% net smelter returns royalty on any future production at the project, including a $15,000 annual advance minimum royalty payment.
For the assets, Vancouver-based Ely Gold will pay Great Western the total consideration over four years. It will pay $15,000 on closing of the agreement, $25,000 on the first anniversary of the closing, $35,000 on the second, $35,000 on the third and $40,000 on the fourth.
Great Western will cover all lease costs associated with the Olympic Gold property. The company may access all associated historical data and conduct a full exploration program there. No work commitments are included in the agreement.
The 825-acre Olympic Gold property, managed by the U.S. Bureau of Land Management, encompasses a past producing mine and a large volcanic-hosted epithermal gold-silver system.
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