Tectonic Metals gets funding for gold exploration in Alaska
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Nevada Select Royalty Inc., a subsidiary of Vancouver-based Ely Gold & Minerals Inc. (TSX-V: ELY), has sold off a Nevada property in a deal valued at US$1 million.
The Mina Gold property, located in Mineral County, Nevada, was sold to Gold Resource Corp. (NYSE: GORO). The deal involved US$150,000 in cash as a one-time advance royalty payment and US$850,000 in Gold Resource restricted common stock. The Gold Resource stock consisted of 130,000 shares issued at August 12th’s closing price of $6.53 per share.
The Mina Gold property covers approximately 825 acres consisting of 43 unpatented claims and five patented claims in Nevada’s Walker Lane Mineral belt.
The Ely Gold subsidiary will also retain royalty claims on several Mina Gold Properties, receiving a net smelter royalty of varying rates. Nevada Select will receive a 3% royalty on five patented claims, 2% on 39 unpatented claims and 1.5% on four unpatented claims with existing royalties. Gold Source has an option to buy down 1% of royalties on unpatented claims for US$1,000,000 and an option to buy down royalties on unpatented claims for US$500,000.
Ely gold stock price is up 2.78% from it’s opening price on August 15, the morning of the announcement.
This is not :he only business Ely Gold has done with Gold Resources. In May Ely Gold purchased a number of option properties. One of the assets purchased required Gold Resource to make option payments on a property in Paradise Peak, Nevada.
According to Trey Wasser, president and CEO of Ely Gold, the deal is a sign of future deals to embody Ely Gold’s new business model “of acquisition and packaging properties while retaining net smelter royalties.”
Read article at: Business in Vancouvwer
