- Ely Gold Royalties (ELY) has signed an agreement with a private seller to expand its net smelter return royalty at the Lincoln Hill property in Nevada
- The company, through its subsidiary Nevada Select Royalty, will acquire an additional one per cent royalty on the project, bringing its total to two per cent
- As consideration, Ely Gold Royalties will pay the seller a total of C$1 million and issue 1 million common share purchase warrants
- The deal remains subject to approval from the TSX Venture Exchange, and is expected to close on around September 1, 2020
- Ely Gold Royalties (ELY) is currently up 1.18 per cent and is trading at $1.71 per share
Ely Gold Royalties (ELY) has signed an agreement with a private seller to expand its net smelter return royalty at the Lincoln Hill property in Nevada.
Under the terms of the deal, Ely Gold Royalties – via its subsidiary Nevada Select Royalty – will acquire all of the rights to an additional one per cent net smelter return royalty on the property, which is located in Pershing County and operated by Coeur Mining.
As such, the company will increase its existing royalty to two per cent for a consideration of C$1 million in cash and 1 million common share purchase warrants.
$500,000 of the cash portion will be paid to the seller upon closing of the deal, with the remaining $500,000 to be paid on January 10, 2021. Each of the common share purchase warrants will be exercisable at a price of $1.69 for a period of two years from the date of issuance.
Trey Wasser, President and CEO of Ely Gold, said he is pleased to be expanding the company’s existing Lincoln Hill Royalty.
“Purchasing additional royalties on our key assets is a critical part of our near-term growth strategy at Ely Gold. With permitting completed on the leach pad expansion, the higher gold grade Lincoln Hill ore will be in very close proximity to the operations and should extend the life of mine at Rochester.
“We look forward to delivering more news as Coeur is now undertaking confirmation drilling at Lincoln Hill,” he added.
While the deal remains subject to approval from the TSX Venture Exchange, it is expected to close on around September 1, 2020.
Ely Gold Royalties (ELY) is up 1.18 per cent and is trading at $1.71 per share at 2:46pm EDT.