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Ely Gold Royalties Inc
Symbol ELY
Shares Issued 161,601,798
Close 2021-04-27 C$ 1.13
Recent Sedar Documents

Ely Gold talks revenue, omits 2020 P&L from NR

2021-04-28 07:38 ET - News Release

Mr. Trey Wasser rpeorts

ELY GOLD ROYALTIES REPORTS YEAR END FINANCIALS

Ely Gold Royalties Inc. has released its year-end financial results for the fourth quarter and year ended Dec. 31, 2020. The company's financial statements and MD&A (management discussion and analysis) for fourth quarter 2020 and full year 2020 have been filed on SEDAR and are available on the company's website.

Financial highlights for the fiscal year ending Dec. 31, 2020:

  • Cash balance of $7,381,784 compared with a cash balance of $2,973,520 for full year 2019.
  • Working capital of $7,810,155 compared with working capital of $2,948,823 for full year 2019.
  • Revenue of $3,349,450 compared with revenue of $2,082,830 for full year 2019.
  • Total gross proceeds from optioned properties and royalty assets of $4,122,966 compared with $3,155,110 for full year 2019.
  • Shareholder equity up 470 per cent to $41,042,723 compared with $8,723,557 for full year 2019.

Financing activities:

  • 21,562,500 shares issued through a brokered private placement for net proceeds of $16,450,990;
  • 24,634,957 shares issued on exercise of warrants for total proceeds of $6,6,857,638;
  • 1,675,000 shares issued on exercise of employee options for total proceeds of $384,000.

Acquisitions

During the year the company completed several acquisitions but the most significant were:

  • VEK Associates by paying $5-million (U.S.) and the issuance of warrants; VEK owns interests in the following leases with royalties:
    • Ren 1.5-per-cent net smelter return (NSR);
    • Marigold 0.75-per-cent NSR;
    • Lone Tree 1.5-per-cent NSR;
    • Carlin mine 1.5-per-cent NSR;
    • Getchell 1.5-per-cent NSR;
  • Jerritt Canyon 0.5-per-cent NSR for $11,553,163 in shares and warrants;
  • Mineral interests and 0.44-per-cent NSR at Railroad-Pinon for $1365,000 (U.S.) cash and warrants;
  • Rawhide 15-per-cent net profits interest (NPI) for $800,000 (U.S.) and warrants;
  • Borden Lake 0.4-per-cent NSR for $307,000 in cash, 100,000 shares 130,000 warrants;
  • Additional 1-per-cent NSR at Lincoln Hill for $1-million (U.S.) and warrants;
  • Ren 3.5-per-cent NPI for $500,000 (U.S.);
  • Watershed 2-per-cent NSR at Cote Lake mine for $2.52-million and warrants;
  • Sleeper 0.5-per-cent NSR for $250,000 (U.S.);
  • Trenton Canyon 0.3-per-cent gross overriding royalty (GRR) for $350,000 (U.S.) and warrants.

Property sales

In full year 2020, Ely Gold sold 12 projects to third parties adding to its royalty generation portfolio, which now totals 29 properties. All projects were sold under a four-year option contract and will generate NSR royalties if exercised. They include the Tonopah West project optioned to Blackrock Silver and the Weepa and Spanish Moon projects optioned to Eminent Gold.

Trey Wasser, president and chief executive officer of Ely Gold, commented: "Two thousand twenty was a formative year on all fronts for Ely Gold. In a challenging environment, we added substantial shareholder value by increasing assets, revenues and property sales. Our continued focus on gold assets in North America is proving to be a solid strategy for future growth for Ely Gold shareholders."

About Ely Gold Royalties Inc.

Ely Gold Royalties is a Nevada-focused gold royalty company. Its current portfolio includes royalties at Jerritt Canyon, Goldstrike and Marigold, three of Nevada's largest gold mines, as well as the Fenelon mine in Quebec, operated by Wallbridge Mining. The company continues to actively seek opportunities to purchase producing or near-term producing royalties. Ely Gold also generates development royalties through property sales on projects that are located at or near producing mines. Management believes that due to the company's ability to locate and purchase third party royalties, its strategy of organically creating royalties and its gold focus, Ely Gold offers shareholders a favourable leverage to gold prices and low-cost access to long-term gold royalties in safe mining jurisdictions.

We seek Safe Harbor.

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