Ely Gold Royalties Inc. (ELY:TSX.V; ELYGF:OTCQX; I4U:FSE) announced in a news release that it has completed the acquisition of 100% of all rights and interests to a 1% net smelter returns royalty (NSR) on the Lincoln Hill Property from a private family trust. The firm noted that the Lincoln Hill Property is located in Pershing County, Nevada, and is operated by Coeur Mining Inc. (CDE:NYSE).
Ely Gold Royalties explained that the proposed transaction was first announced in a company press release in July of last year. Ely Gold advised that with this purchase it now owns in total a 2% NSR interest in Lincoln Hill.
The company stated that according to the agreed upon transaction terms it paid the private family trust seller US$1 million at closing. The agreement also requires Ely Gold to issue the seller 1,000,000 common stock purchase warrants within five days of closing. The warrants are valid for a period of two years from the transaction closing date and provide the seller with the rights to purchase a like number of Ely Gold common shares at a price of CA$1.69 per share.
The company's President and CEO Trey Wasser remarked, "We are very pleased to add another 1% NSR of 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. 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 is expected to 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 indicated that the Lincoln Hill property is composed of 97 unpatented claims and 1 patented lode claim and lies next to Coeur Mining's Rochester mine. Ely Gold mentioned that "the Lincoln Hill property package also includes 23 unpatented claims known as the Rosal Claims, where it currently holds a 1.5% NSR." The firm noted it categorizes these claims as "Development Assets," terminology that the company uses to classify properties located at or near current producing mines, which it believes greatly increases the probability for the royalty to be highly rewarding.
Read what other experts are saying about:
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.
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 decision to publish an article until three business days after the publication of the 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.