At the conclusion of the Option Agreement, Ely Gold retains a 2.0% Net Smelter Returns Royalty (“NSR”) on any future production at the White Rock
Ely Gold Royalties Inc. (TSXV: ELY) (OTCQX: ELYGF) (“Ely Gold” or the “Company”) is pleased to announce that Nevada Select Royalties Inc., a subsidiary of Ely Gold, has entered into an Option to Purchase Agreement (the “Option Agreement”) with Provenance Gold USA, a wholly owned subsidiary of Provenance Gold, Inc. (PAU.CN) (collectively “Provenance” ) to acquire thirty (30) unpatented lode mineral claims on the White Rock Gold Project (the “White Rock”) located in Elko County, Nevada. At the conclusion of the Option Agreement, Ely Gold retains a 2.0% Net Smelter Returns Royalty (“NSR”) on any future production at the White Rock.
The option payments amount to US$250,000 over four years (the “Option Period”) as follows:
- $10,000 on closing the option agreement;
- $25,000 on the first anniversary of closing;
- $40,000 on the second anniversary of closing;
- $50,000 on the third anniversary of closing; and
- $125,000 on the fourth anniversary of closing (the “Option Exercise”)
Upon signing the Option Agreement, Provenance becomes responsible for all lease costs associated with the Property and is entitled to carry out a full exploration program with right of access to all historic data. Completion of the acquisition may be accelerated by bringing forward annual option payments. There are no work commitments associated with the Option Agreement. Relinquishment can be affected by Provenance during the Option Period without penalty. The Option Agreement includes a two (2) mile area of interest. Upon Option Exercise, Ely Gold will retain a two percent (2%) NSR which includes a US$25,000 annual advance minimum royalty payment.
THE WHITE ROCK GOLD PROJECT
White Rock is located in the Goose Creek Mountains along the Nevada–Utah border in the Delano Mining District. The terrane in the White Rock area is composed of a Permian-age bedded sequence of limestone, chert, siliceous siltstone, and cherty limestone. A northeast striking fault system forms the boundaries of a large graben where Permian sedimentary rocks are exposed in topographic highs on either side of the graben.Within the graben both Tertiary volcanic and Permian sedimentary rocks are exposed and mapped alteration effects in the siliceous siltstone include bleaching, silicification, quartz veining, iron oxide staining, and brecciation.
White Rock was originally located and explored by AMAX Gold in 1984. Drill programs were conducted by AMAX and later by Kennecott Copper (now Rio Tinto Kennecott) that reportedly generated an historic resource which will now be the focus of Provenance’s exploration program. Ely Gold has provided Provenance with all available historic data on White Rock.
Source: Company Press Release