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Company Doubles Royalty in Nevada Gold & Silver Property
News Update

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Ely Gold Royalties reported it finalized the purchase of a 1% net smelter returns royalty on the Lincoln Hill Property in Nevada, raising its NSR stake in the property operated by Coeur Mining to 2%.

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.


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.
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