Ely Gold Royalties Inc.
Ely Gold Royalties (TSXV: ELY) (OTCQX: ELYGF) Closes Purchase of Important Nevada Royalty Portfolio
DGAP-News: Ely Gold Royalties Inc.
/ Key word(s): Miscellaneous
Vancouver, British Columbia–(Newsfile Corp. – May 19, 2020) – Ely Gold Royalties Inc. (TSXV: ELY) (OTCQX: ELYGF) (FRA: A2JSL0) (“Ely Gold”) is pleased to announce that, through its wholly owned subsidiary REN Royalties LLC (collectively with Ely Gold the “Company”), it has substantially completed the agreement (the “Agreement“) with VEK Associates, a privately held Nevada corporation (“VEK“) announced on February 28, 2020. The Agreement provided for the purchase of up to 100% of the outstanding shares of VEK for cash consideration of US$5,000,000, plus 2,005,164 Ely Gold share purchase warrants, each exercisable over a 24-month term to purchase one Ely Gold common share at an exercise price of CAD$0.62 per share (the “Warrants“). The Company has now closed on the acquisition of 94.2% of the outstanding VEK shares. The Agreement VEK Associates REN Property- currently leased to Nevada Gold Mines Marigold Property- currently leased to SSR Mining
VEK sold one half of the Marigold royalty to Franco Nevada, reducing the VEK royalty 0.75%. Lone Tree Property- currently leased to Nevada Gold Mines Pinson Property- currently leased to Nevada Gold Mines Carlin Trend Property- currently leased to Nevada Gold Mines VEK Associates Data VEK/Andrus Advance Royalty Payments
All of the Leases with the exception of Lone Tree, have inflation adjustment clauses associated with the payments, and all the Leases carry a 3.0% net smelter returns royalty (50% to VEK Associates), except Marigold where VEK Associates holds a 0.75% royalty. Qualified Person On Behalf of the Board of Directors For further information, please contact: Trey Wasser, President & CEO Joanne Jobin, Investor Relations Officer FORWARD-LOOKING CAUTIONS: This press release contains certain “forward-looking statements” within the meaning of Canadian securities legislation, including statements regarding the potential value of the VEK royalty portfolio, including future mineral production prospects and royalty revenue gains, and the Company’s expectations for acquisitions of additional VEK shares. These matters are subject to certain risks and uncertainties. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “aims,” “potential,” “goal,” “objective,” “prospective,” and similar expressions, or that events or conditions “will,” “would,” “may,” “can,” “could” or “should” occur, or are those statements, which, by their nature, refer to future events. The Company cautions that Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include risks of declining precious metals prices, failure or underperformance of projects in which the Company has an interest, inability to settle VEK share acquisitions due to problems with vendors or legal impediments, and political uncertainties and regulatory or legal disputes or changes in the jurisdictions where the Company carries on its business that might interfere with the Company’s business and prospects. The reader is urged to refer to the Company’s reports, publicly available through the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effect. This news release has been issued by the Company in order to comply with its obligations under Canadian provincial securities laws, and does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The Company’s securities may not be offered or sold within the United States or to U.S. Persons (as defined in the United States Securities Act of 1933 (as amended) (the “1933 Act“) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available. Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release. NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/56071 Click on, or paste the following link into your web browser,to view the associated documents http://www.newsfilecorp.com/release/56071News Source: Newsfile
19.05.2020 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | Ely Gold Royalties Inc. |
Canada | |
ISIN: | CA2905221016 |
EQS News ID: | 1050521 |
End of News | DGAP News Service |