Ms. Joanne Jobin reports
ELY GOLD ROYALTIES (TSXV: ELY) (OTCQX: ELYGF) PURCHASES TRENTON CANYON ROYALTY, NEVADA
Ely Gold Royalties Inc., through its wholly owned subsidiary, Nevada Select Royalty Inc., has agreed to purchase a 0.3-per-cent net smelter returns royalty (NSR) from a private individual. The Trenton Canyon royalty covers 52 unpatented mining claims located on the Battle Mountain-Eureka trend, Nevada, which is currently being drilled by SSR Mining. The transaction is subject to the approval of the TSX Venture Exchange and is expected to close on Dec. 1, 2020.
The Trenton Canyon property consists of 7,350 hectares located immediately south and along the mineralized trend from SSR's Marigold mine where Ely Gold also has a 0.75-per-cent NSR. The property was previously operated as an open-pit run-of-mine heap leach operation from 1996 to 2001 by Newmont Corp. SSR purchased Trenton Canyon from Newmont in June, 2019. Recent drilling by SSR (see news release May 14, 2020) on the royalty claims returned 7.27 grams per tonne gold over 30.5 metres, including 12.2 metres of 17.23 g/t gold, leading to the discovery of gold mineralization that is transitional oxide in drill hole MRA7092. Two additional mineralized intercepts in the MRA7092 returned 19.8 metres of 2.03 g/t gold and 6.1 metres of 3.65 g/t gold. Numerous other drill holes immediately south of the royalty claims returned significant results in multiple zones. These include MRA7178, which assayed 94.5 metres of 5.19 g/t gold including 7.6 metres of 44.68 g/t gold.
Ely Gold will pay total consideration of $300,000 (U.S.) to comprise $150,000 (U.S.) in cash payable now and $150,000 (U.S.) in cash to be paid on Jan. 15, 2021. Ely Gold will also issue one million common stock warrants. The Ely warrants have a two-year term and will have an exercise price of $1.36 (Canadian). Securities issued under the Ely warrants will be subject to a four-month hold period. The deferred payment will accrue simple interest at 5 per cent.
Trey Wasser, president and chief executive officer of Ely Gold, commented: "Once again our relationships in Nevada have provided us with an excellent royalty opportunity. SSR is generating exploration excitement at Trenton Canyon and this royalty purchase places us right in the middle of that action. It also fits our strategy of adding to our portfolio of existing royalty positions in Nevada."
Jerry Baughman, president of Nevada, commented: "The Trenton Canyon royalty is located on the Battle Mountain-Eureka trend and with its close proximity to infrastructure and a strong operating partner in SSR Mining, provides an excellent royalty value to Ely Gold. This asset is yet another example of our strategy of acquiring or generating royalties that are at or near producing mines. This transaction is a testament to our ability to make third party royalty purchases due to our long-standing relationships throughout Nevada."
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 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.
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