Ely Gold Royalties Inc. (ELY:TSX.V; ELYGF:OTCQB) announced in a news release that through its subsidiary, Nevada Select Royalty, it agreed to acquire 75 patented mining claims from Cliff ZZ LLC. Closing is expected on May 2, 2020.
These assets, known as the Tonopah Extension Claims, are located in Nevada's Esmeralda and Nye counties and are contiguous the 23 patented and 17 unpatented mining claims Ely Gold already owns in the historical mining district. Thus, with the transaction, Ely Gold will expand its land package there.
"This transaction supports our business model of consolidating underexplored districts while generating royalty interests," Ely Gold President and CEO Trey Wasser said in the release. "We consider Tonopah to be one of the best districts in Nevada based on past production and exploration potential."
Total consideration for 100% of the Tonopah Extension is $650,000 in cash and 600,000 Ely Gold share purchase warrants. Each warrant will be exercisable into one common share at $0.65 for two years. After closing, Cliff ZZ will not retain a royalty on the claims.
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