Mr. Trey Wasser reports
ELY GOLD ROYALTIES (TSX-V: ELY, OTCQX: ELYGF) ANNOUNCES OPTION AGREEMENT, 3.0% NSR ON OLYMPIC GOLD PROJECT, NEVADA
Nevada Select Royalties Inc., a subsidiary of Ely Gold Royalties Inc., has entered into an option to purchase agreement with Great Western Mining Corp. Inc., a wholly owned subsidiary of Great Western Mining Corp. PLC, to acquire 48 unpatented lode mineral claims on the Olympic gold project located in Mineral county, Nevada. At the conclusion of the option agreement, Ely Gold retains a 3.0-per-cent net smelter returns royalty on any future production at the Olympic gold project.
The option payments amount to $150,000 (U.S.) over four years as follows: $15,000 on closing the option agreement; $25,000 on the first anniversary of closing; $35,000 on the second anniversary of closing; $35,000 on the third anniversary of closing; and $40,000 on the fourth anniversary of closing.
Great Western becomes responsible for all lease costs associated with the property and is entitled to carry out a full exploration program with right of access to all historic data. Completion of the acquisition may be accelerated by bringing forward annual option payments. There are no work commitments associated with the option agreement. Relinquishment can be affected by Great Western during the option period without penalty. The option agreement includes a one-mile area of interest. Upon option exercise, Ely Gold will retain a 3-per-cent net smelter returns royalty which includes a $15,000 annual advance minimum royalty payment.
The Olympic gold project
The Olympic gold project is located 30 kilometres southeast of Gabbs, Nev., within the Bell mining district and consists of 48 unpatented lode claims located on federal land managed by the Bureau of Land Management, covering approximately 825 acres. The property is a past-producing mine that encompasses a large volcanic-hosted epithermal precious metal (gold and silver) system that includes both high-grade veins and lower grade disseminated mineralization.
Stephen Kenwood, PGeo, is a director of the company and a qualified person as defined by National Instrument 43-101. Mr. Kenwood has reviewed and approved the technical information in this press release.
About Ely Gold Royalties Inc.
Ely Gold Royalties is a Nevada-focused junior gold royalty company. Its current portfolio includes royalties at some of Nevada's largest gold mines, including Jerritt Canyon, Goldstrike and Marigold as well as the Fenelon property in Quebec, operated by Wallbridge Mining.
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