Consistent with the firm's strategy, this new
asset is at or near a producing mine with a quality operator.
Ely Gold
Royalties Inc. (ELY:TSX.V; ELYGF:OTCQB) announced in a news release it agreed to acquire for CA$750,000, from a
private person, all of the rights and interests to a 1% net smelter return
(NSR) royalty on Coeur Mining's Lincoln Hill property.
The transaction is expected to close on or around June 1, 2019. At that
time, Ely Gold will pay the seller CA$400,000 and then on Jan. 10, 2020, pay
the remaining CA$350,000. Also, the company will issue the seller 500,000
common stock purchase warrants. Each full warrant will allow the seller to
buy one share of Ely Gold common stock at CA$0.17 for two years after the
closing.
Ely Gold's new NSR royalty on Lincoln Hill includes 97 unpatented claims
and one patented lode claim. Lincoln Hill has a Measured and Indicated oxide
resource of 285,000 ounces (285 Koz) of gold and 7.3 million ounces (7.3 Moz)
of silver contained in 23.4 million tons of mineralized material, along with
an Inferred oxide resource of 74 Koz of gold and 2.2 Moz of silver, as
recorded in 2014.
Located in Pershing County, Nev., Lincoln Hill is adjacent to Coeur's
Rochester mine. "As Coeur moves toward the permitting of the new, stage
six leach pad at Rochester, the higher-grade Lincoln Hill ore will be in very
close proximity," Ely Gold President and CEO Trey Wasser said in the
release.
The Lincoln Hill property also includes 23 unpatented claims known as the
Rosal claims, on which Ely Gold currently holds a 1.5% NSR.
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