This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Solitario Reduces Royalty And Options Significant Gold And Molybdenum Deposit On Its Mt. Hamilton Project, Nevada

Stocks in this article: ELY XPL

Solitario Exploration & Royalty Corp. (“Solitario;”) (NYSE Amex:XPL) (TSX:SLR) and Ely Gold & Minerals Inc. (“Ely Gold” - including Ely Gold’s 100%-owned US subsidiary DHI US) (TSX.V:ELY) are pleased to announce that their joint venture, Mt. Hamilton LLC (“MH LLC”), has bought-down an existing 2.0% NSR royalty obligation on gold and silver production on the Mt. Hamilton gold project and has completed an initial evaluation of the Shell gold-molybdenum property optioned in the first quarter of 2011. The Shell property comprises eight strategically located mining claims on the south side of the Mt. Hamilton project area. Completion of the royalty buy-down along with the new potential on the Shell property significantly enhances overall project economics and exploration potential. Mt. Hamilton is situated at the southern end of the prolific Battle Mountain gold trend in eastern Nevada where Solitario is currently managing feasibility work.

Terms of the Royalty Reduction Purchase

MH LLC purchased the 2.0% NSR royalty for $2.52 million, consisting of $1.52 million in cash and $1.0 million by the delivery of 344,116 shares of Solitario. Solitario contributed the entire purchase price and loaned Ely Gold its 20% proportionate share. The loan to Ely Gold will bear interest at 6% per annum and will be repaid from Ely Gold’s future production proceeds. With the completion of the 2.0% NSR royalty reduction purchase, the royalty rate on gold and silver mineralization on the Mt. Hamilton gold project will be reduced to 1.0%, assuming MH LLC fully exercises its current option to further reduce the royalty from 6.0% to 1.0% for cash payments totaling $5.0 million to underlying royalty holders. The $5.0 million NSR royalty reduction option is exercisable at any time prior to commercial production. Closing of the royalty purchase, including the issuance of Solitario’s common shares, is subject to customary approvals including required regulatory approval by the NYSE Amex Equities exchange and the Toronto Stock Exchange.

1 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs