• Ely Gold Royalties (TSXV:ELY) has completed a brokered private placement for gross proceeds of C$17.25 million
  • The offering was co-led by Clarus Securities and Mackie Research Capital, in conjunction with PowerOne Capital Markets
  • Approximately 21.5 million units were offered at a price of 80 cents each
  • These units consisted of one common share and half of one common share purchase warrant
  • The proceeds will be used to fund further exploration effort and future royalty acquisitions
  • Ely Gold Royalties (ELY) is down 0.85 per cent and is currently trading at $1.17 per share, with a market cap of $132.27 million

Ely Gold Royalties (TSXV:ELY) has completed a brokered private placement for gross proceeds of C$17.25 million.

Headquartered in Vancouver, the company is focused on the development of high-quality gold properties in Nevada, USA. Ely Gold’s current asset portfolio contains deeded royalties, optioned properties and properties available for sale.

The placement was co-led by Clarus Securities and Mackie Research Capital as joint bookrunners, in conjunction with PowerOne Capital Markets. A total of 21,562,500 units were offered at an individual price of $0.80.

Each of these units consisted of one common share in the company, as well as half of one common share purchase warrant.

These warrants entitle the holder to acquire one additional common share at a price of $1.00, exercisable over a period of three years.

Clarus Securities, Mackie Research Capital and PowerOne Capital Markets were each paid a cash commission, along with compensation options totalling 731,250 common shares. These shares are exercisable at a price of $0.80 for a period of three years.

At Ely Gold’s discretion, the expiry date of the warrants may be brought forward if the company’s shares trade at or above a volume weighted average price of $1.60 for a period of five consecutive trading days.

As part of the placement, certain insiders of Ely Gold purchased a total of 9,737,000 units in a related party transaction.

The company plans to use the proceeds primarily to fund further exploration programs, future royalty acquisitions and related project generative activities. A portion will also be used for general working capital purposes.

Ely Gold Royalties (ELY) is down 0.85 per cent and is currently trading at $1.17 per share at 2:08pm EDT.

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