VANCOUVER, British Columbia
, Aug. 28, 2012 /PRNewswire/ --
Ely Gold & Minerals Inc
is providing an update and clarification on recent financing activities by the Mt. Hamilton LLC ("
") and its joint venture partner Solitario Exploration & Royalty Corp. ("
"). MH-LLC was formed in
and holds 100% interest in the Mt.
gold project in
White Pine County, NV.
February 22, 2012
released a 43-101 compliant bankable feasibility study showing robust economics for the development of an open pit heap leach mine at Mt.
. The study and the press release can be viewed on
. It has also been filed on SEDAR by
and Solitario. By funding all expenditures to produce the study, Solitario earned an 80% interest in MH-LLC.
holds a 20% interest through its wholly owned subsidiary DHI Minerals (US) Ltd ("DHIU"). Solitario's interest is subject to dilution if it does not meet certain Continuing Payment Obligations to DHIU,
2011 Royalty Purchase and the Sandstorm NSR Sale
, MH-LLC purchased a 2% NSR from the underlying Mt.
. The NSR purchase was fully funded by Solitario and resulted in a loan from Solitario to
June 11, 2012
, MH-LLC announced the sale of a 2.4% NSR to Sandstorm Gold Ltd. ("
for total proceeds of
were received in cash on the sale of the royalty and
will be received cash in
. MH-LLC has the right to repurchase 100% of the NSR for
, provided that MH-LLC enters into a gold stream agreement with Sandstorm that has an upfront deposit of not less than
. In addition, MH-LLC has provided Sandstorm with a right of first refusal on any future royalty or gold stream financing for the Mt.
project. The press releases for both transactions can be viewed on
's website and the agreements are available for viewing under the Company's profile on SEDAR at
MH-LLC Distribution and Amendments to the Operating Agreement
June 28, 2012
, subsequent to the sale of the Sandstorm NSR,
and Solitario entered into an agreement whereby MH-LLC distributed
to its partners. Solitario received
for reimbursement of its share of the 2011 royalty purchase.
which was paid to Solitario in full satisfaction of the
loan from Solitario, inclusive of accrued interest. In addition,
and Solitario amended the operating agreement for MH-LLC to extend certain continuing payment obligations of Solitario to better correspond with the underlying lease payments. Both Agreements can be viewed under the Company's profile on SEDAR.
RMB Loan and the MH-LLC Side Agreement
August 13, 2012
Solitario entered into a
secured credit facility with RMB Australia Holdings Limited ("
"). The loan is a corporate obligation of Solitario and is secured by its 80% interest in MH-LLC.
, Solitario and RMB also entered into a Side Agreement to set out the terms on which
would consent to the creation of an encumbrance on Solitario's Interest and permit Solitario to borrow the Funds from RMB. It clarifies, in relation to the loan, the MH-LLC Operating Agreement and Solitario's continuing payment obligations. The Side Agreement stipulates that the loan does not encumber
's 20% interest in any way, give RMB control or liens over any assets of MH-LLC or restrict any of
's rights under the MH-LLC operating agreement. The Side Agreement also amends the terms by which Solitario will subscribe to
shares for future property payments on Mt.
. Both Agreements can be viewed under the Company's profile on SEDAR.
Both Sandstorm and RMB completed full due diligence on the Mt.
project, including site visits, prior to the financings.
's Executive Chairman, commented on the recent financing activities. "The Sandstorm Royalty payments fund the MH-LLC with
after the distribution to the partners. These funds will not only help fast track the permitting process, but allow us to further explore the Seligman Pit area adjacent to the Centennial reserves. There are inferred resources at Seligman that could expand the reserves which would then significantly improve the mine plan with ore that won't require pre-strip capital. During its drill campaign this summer, Solitario had three drill rigs onsite, so shareholders can expect some good news flow this fall."
is proving to be a very solid project," stated
's President & CEO. "Solitario is doing an excellent job securing strategic financings with well known resource lenders and advancing the property through the drill bit."
This press release has been read and approved by
, P. Geo, a director of the Company and the Company's Qualified Person.
On Behalf of the Board of Directors
Signed " Trey Wasser"
, President & CEO
For further information, please contact
& Minerals Inc. at 604-488-1104.E-mail:
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.
& Minerals Inc.