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Ely Gold Royalties (TSXV: ELY) announced that it has reached binding agreements with 12 separate individuals to purchase private mineral interests on over 8,000 acres of private fee ground in Elko County, Nevada.
In a press release, the Vancouver-based firm said that all of the fee ground and the mineral interests are currently leased to Gold Standard Ventures and cover certain portions of GSV’s Railroad-Pinion project that is currently being developed as a heap-leach mining operation.
“The leases provide for a combined 1.15% net smelter returns royalty and annual lease payments of over $150,000. The mineral interests and leases cover large portions of the Dark Star, Pinion and Jasperoid Wash deposits in the South Railroad Complex as well as portions of the POD and Bald Mountain zones in the North Railroad,” the media brief states.
The mineral interests and leases cover portions of the Dark Star, Pinion and Jasperoid Wash deposits in the South Railroad Complex and portions of the POD and Bald Mountain zones in the North Railroad
“Eleven of the transactions are expected to close on December 1, 2020. One of the transactions is subject to the approval of the Toronto Venture Exchange.”
For the first group of transactions, Ely Gold has committed to pay a total consideration of $2.5 million in cash at closing. For the individual transaction, the company will pay a $1.3-million cash consideration and issue 300,000 common stock warrants.
“Ely Gold has successfully consolidated another complex transaction resulting in a meaningful royalty position on one of Nevada’s next mine developments,” Trey Wasser, the investment firm’s president and CEO, said in the statement.
“Not only do these leases cover approximately 35% of the total resources at South Railroad, they also cover most of GSV’s 2020 expansion drilling at Dark Star, Pinion and Jasperoid Wash.”
The Railroad-Pinion project is an intermediate to advanced stage gold project situated at the southeast end of the Carlin Trend of north-central Nevada, adjacent to and south of Nevada Gold Mines’ Rain mining district.
“The Carlin Trend is a northwest alignment of sedimentary rock-hosted gold deposits with past production exceeding 80,000,000 ounces of gold. Each dome or ‘window’ is cored by igneous intrusions that uplift and expose Paleozoic rocks and certain stratigraphic contacts that are favorable for the formation of Carlin-style gold deposits. The Railroad-Pinion project is centered on the fourth and southernmost dome-shaped window on the Carlin Trend,” Ely Gold’s media release states.
