Vancouver-based Ely Gold Royalties Inc. (ELY:TSX.V; ELYGF:OTCQB) announced in a news release that its subsidiary, Nevada Select Royalty, agreed to purchase, from a private seller, eight unpatented mining claims at McEwen Mining's Gold Bar mine in Nevada.
"This transaction gives us two additional properties in the Nevada Gold Bar complex and with the addition of the HNT and JAM Claims we now hold a total of six properties and royalties at Gold Bar," Ely Gold President and CEO Trey Wasser said in the release. "We believe that both claim blocks contain excellent targets and represent resource expansion potential for McEwen Mining's Gold Bar Producing Mine."
Because the claims, two HNT and six JAM, are currently being leased to a subsidiary of McEwen Mining, the agreement calls for the leases to be assigned to Ely Gold. The annual lease payments are $5,000 for the HNT claims, and $7,000 for the JAM claims. Both leases provide for a 2% net smelter returns royalty at current gold prices.
Also according to the arrangement, Ely Gold will pay $125,000 and issue 100,000 share warrants to the seller at closing. Each warrant, available for two years, may be exercisable for the purchase of one share of Ely Gold common stock at CA$0.77.
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