Ely Gold & Minerals Inc.: Options North Hackberry Project to Bitterroot Resources
The three (3) North Hackberry unpatented lode claims cover 24 ha (60 acres) and host the Silver King past-producing high-grade silver mine. The Silver King high-grade deposit was discovered in 1879 and was mined from 1879 to 1884. The Silver King mine is an important part of the main Hackberry mineralized system, which also hosts the Old Hackberry (Sunshine) and South Hackberry Mines. Bitterroot now controls lands covering over 4.2 kilometres (2.6 miles) of prospective strike length along the Hackberry silver-mineralized structure.
The Option
Pursuant to the terms of the Option, subject to TSX Venture Exchange ("Exchange") approval, Ely Gold through its wholly owned subsidiary, Nevada Select Royalty, Inc. ("Nevada Select") has granted the exclusive option to Bitterroot to acquire the Company's 100% interest in and to the North Hackberry Project by making the following payments and share issuances over 4 years:
- At Closing - US$20,000 cash and the issuance of 200,000 Bitterroot common shares;
- Year 1 - US$30,000 cash and the issuance of 100,000 Bitterroot common shares;
- Year 2 - US$50,000 cash and the issuance of 150,000 Bitterroot common shares;
- Year 3 - US$50,000 cash and the issuance of 150,000 Bitterroot common shares; and
If the Final Option Payment is made Nevada Select will retain a total 3% net smelter returns royalty on the North Hackberry claims. Nevada Select will retain a .5% NSR on unpatented claims within a 2.66 mile area of interest. There are no work commitments or additional expenditures required other than Bitterroot's obligation to maintain the underlying agreements and claim maintenance fees per year of approximately US$600.
Bitterroot will pay Nevada Select annual advance royalty payments as follows:
- US$10,000 on the first through third anniversary dates of the Final Option Payment;
- US$15,000 on each anniversary date of the Final Option Payment thereafter.
Stephen Kenwood, P. Geo, is director of the Company and a Qualified Person as defined by NI 43-101. Mr. Kenwood has reviewed and approved the technical information in this press release.
About Ely Gold
Ely Gold is focused on developing recurring cash flow streams through the acquisition, consolidation, enhancement, and resale of highly prospective, un-encumbered North American precious metals properties. Ely's property development efforts maximize each property's potential for acquisition, while reserving significant royalty interests. Additional information about Ely Gold is available at the Company's website, at www.elygoldinc.com.
On Behalf of the Board of Directors
Signed "Trey Wasser"
Trey Wasser, President & CEO
For further information, please contact:
trey@elygoldinc.com 972-803-3087 | ir@elygoldinc.com 604-488-1104 |
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.