Feb 08, 2013
Ely Gold concludes agreement to purchase 100% of the Green Springs property, White Pine County, Nevada
Ely Gold & Minerals Inc. ("Ely Gold") is pleased to announce that, through its wholly owned subsidiary DHI Minerals (US) Ltd ("DHI"), it has entered into a definitive agreement (the "Agreement") with Palladon Ventures ("Palladon") TSX-V: PLL to purchase 100% of 76 unpatented mining claims in White Pine County in eastern Nevada ("Green Springs") for $300,000 cash.
Green Springs covers an area of 1498 acres and lies approximately 5 miles south of Ely Gold's Mt Hamilton project which is currently in the permitting process for mine development. The Mt Hamilton Project is being managed by Solitario Exploration & Royalty Corp. ("Solitario"); NYSE MKT: XPL; TSX: SLR, under a joint venture agreement with Ely Gold whereby Solitario owns 80% and Ely Gold owns 20%. The Green Springs property is located 14 miles southeast of Midway Gold's ("Midway") NYSE: MDW Pan Deposit which is in the permitting process for mine development and 7 miles southeast of Midway's Goldrock project and 10 miles northwest of Pilot Gold's; TSX: PLG Griffon project. The mining claims at Green Springs were first staked by U.S. Minerals Exploration Company ("USMX") in 1979. USMX mined the property for gold as an open pit heap leach operation from 1988 to 1990.
The Green Springs Agreement contains standard terms and conditions, including due diligence results satisfactory to Ely Gold. To ensure acquisition of a 100% interest, Ely Gold has arranged for termination of an existing option on the Green Springs claims, prior to closing, for $50,000. The claims will be acquired subject to a 2% NSR.
Prior to signing the Agreement Ely Gold acquired a mining lease and 100% purchase option on two mining claims contiguous to the Green Springs Property (the "Cox Claims"). The lease on the Cox Claims has a term of 10 years with escalating advance royalty payments and a 100% purchase option. The first year advance royalty payment was $13,000 and included a significant amount of the historic drill data and production records from USMX. Ely Gold has the option to purchase the claims for an amount equal to $200,000 less the aggregate of the annual advance royalty payments made prior to the date of exercise. Title will be taken subject to an annual advance royalty of $25,000 until commencement of commercial production, after which a 2% NSR will be payable (after recovery of advance royalties and subject to a buy-down option for 1% for $500,000 in favour of Ely Gold).
"We are very excited to secure a 100% interest to these properties in what has become a prime development area of Nevada", stated Trey Wasser, Ely Gold's President & CEO.
John Brownlie, Ely Gold's Executive Chairman commented, "The consolidating of this claim grouping at the site of past gold mining and the availability of the historical data makes this a very attractive project for Ely Gold as Mt. Hamilton progresses through the permitting process"
This press release has been read and approved by Stephen Kenwood, P. Geo, a director of the Company and the Company's Qualified Person.
On Behalf of the Board of Directors
Signed "Trey Wasser"
Trey Wasser, President & CEO
For further information, please contact Ely Gold & Minerals Inc. at 604-488-1104.
E-mail: [email protected]; Website: www.elygoldandminerals.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
You can view the Next News Releases item: Fri Apr 12, 2013, Ely Gold provides update of the Green Springs Project and engages SRK Consulting
You can view the Previous News Releases item: Tue Jan 15, 2013, Solitario and Ely Gold Receives $4.0 Million Payment From Sandstorm And Updates Activities On Its MT. Hamilton Gold Project, Nevada
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