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Ely Gold Royalties Inc
Symbol C : ELY
Shares Issued 100,195,928
Close 2019-10-02 C$ 0.37
Recent Sedar Documents

Ely Gold closes acquisition of Lincoln Hill royalty

2019-10-03 07:17 ET - News Release

Mr. Trey Wasser reports

ELY GOLD ROYALTIES ANNOUNCES CLOSING OF LINCOLN HILL ROYALTY (TSXV: ELY) (OTCQB: ELYGF)

On Sept. 10, 2019, Ely Gold Royalties Inc. completed its previously announced (see news releases dated April 23 and April 29, 2019) purchase of 100 per cent of all rights and interests to a 1.00-per-cent net smelter return royalty on the Lincoln Hill property, located in Pershing county, Nevada, and operated by Coeur Mining Inc.

Ely Gold purchased the Lincoln Hill royalty from a non-arm's-length private party. The closing has been approved by the TSX Venture Exchange.

Coeur's acquisition of Lincoln Hill

Coeur purchased the Lincoln Hill property as part of a larger property package from Alio Gold Inc. in October, 2018. According to the Coeur press release, dated Oct. 16, 2018, the acquisition offered, in part, the following synergies with its Rochester property:

  • Lincoln Hill average gold resource grade is more than four times higher than Rochester's current grade;
  • Lincoln Hill 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;
  • Coeur is currently permitting the Stage VI leach pad near Linclon Hill;
  • Consistent with Coeur's strategy of growing its production and cash flow with the addition of low-risk, high-quality and high-return asset.

The transaction

Ely Gold will pay the seller a total of $750,000 payable as follows:

  • $400,000 at closing (paid);
  • $350,000 payable on Sept. 10, 2020.

The 2020 payment will accrue simple interest at 5 per cent and be secured by the Lincon Hill royalty. In addition, Ely Gold has issued the seller 500,000 common stock purchase warrants. Each warrant will allow the seller to purchase one share of Ely Gold common stock at 18 Canadian cents for two years from the closing date. The purchase agreement includes a right of first refusal if the seller disposes of an additional 1-per-cent royalty they currently hold.

About Ely Gold Royalties Inc.

Ely Gold Royalties is a Vancouver-based, emerging royalty company with development assets focused in Nevada and Quebec. Its current portfolio includes 33 deeded royalties and 20 properties optioned to third parties. Ely Gold's royalty portfolio includes producing royalties, fully permitted mines and development projects that are at or near producing mines. The company is actively seeking opportunities to purchase existing third party royalties for its portfolio and all the company's option properties are expected to produce royalties, if exercised.

We seek Safe Harbor.

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