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News Update

TICKERS: ELY; ELYGF; I4U

Gold Royalty Firm Expands NSR Royalty at Nevada Property
News Update

Source:

Ely Gold Royalties reported that it has increased its net smelter returns royalty at the Lincoln Hill property operated by Coeur Mining.

Nevada focused gold royalty company Ely Gold Royalties Inc. (ELY:TSX.V; ELYGF:OTCQX; I4U:FSE) in a news release announced that "it has entered into a binding letter agreement with a private individual seller whereby Ely Gold, through its wholly-owned subsidiary Nevada Select Royalty Inc., a Nevada corporation, will acquire 100% of all rights and interests to an additional one percent (1%) net smelter returns royalty (NSR) on the Lincoln Hill Property, located in Pershing County, Nevada, operated by Coeur Mining Inc. (CDE:NYSE)." The firm indicated that the transaction is expected to close on or around September 1, 2020, and is subject to certain conditions including TSX-Venture Exchange approval.

Ely Gold stated that it considers the Lincoln Hill property to be one of its most important assets and that after the transaction is completed it will raise Ely's NSR royalty on that property to 2%.

Ely President and CEO Trey Wasser remarked, "We are very pleased to add another 1% NSR on the Lincoln Hill Royalty to our royalty portfolio. Purchasing additional royalties on our Key Assets is a critical part of our near-term growth strategy at Ely Gold. With permitting completed on the leach pad expansion, the higher gold grade Lincoln Hill ore will be in very close proximity to the operations and should extend the life of mine at Rochester. We look forward to delivering more news as Coeur is now undertaking confirmation drilling at Lincoln Hill."

The firm explained that Lincoln Hill sits adjacent to Coeur Mining's Rochester open-pit, heap-leach mine, and thus offers Coeur significant operational synergies. The company indicated that the Lincoln Hill royalty covers 97 unpatented claims along with one patented lode claim. The firm pointed out that the property package also includes 23 other unpatented claims known as the Rosal claims, where Ely Gold currently holds a 1.5% NSR and is included with 22 other properties that comprise Ely Gold's development assets.

The company reported that Coeur Mining stated in a press release that Lincoln Hill's average gold resource grade is greater than four times higher than Rochester's current grade and is expected to become a source of higher-grade, low-cost production capable of bolstering future cash flow and further extending Rochester's mine life.

Under the terms of the agreement Ely Gold will be required to pay the seller a total of $1 million with $500,000 due at closing and the remaining $500,000 payable on January 10, 2021. The company advised that the 2021 payment will accrue simple interest at 5% and be secured by the Lincoln Hill Royalty. The transaction details additionally stipulate that that Ely Gold will issue the seller 1 million common stock purchase warrants with each full warrant giving the seller the option to purchase one share of Ely Gold common stock at CA$1.69 for a period of two years from the closing date.

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his 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. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Ely Gold Royalties, a company mentioned in this article.




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