This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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!

Ely Gold Concludes Agreement To Purchase 100% Of The Green Springs Property

Stocks in this article: ELY

WHITE PINE COUNTY, Nev., Feb. 8, 2013 /PRNewswire/ --  Ely Gold & Minerals Inc. (TSX-V: ELY), (" Ely Gold ") is pleased to announce that, through its wholly owned subsidiary DHI Minerals (US) Ltd ("DHI"), it has entered into a definitive agreement (the " Agreement") with Palladon Ventures (" Palladon") to purchase 100% of 76 unpatented mining claims in White Pine County in eastern Nevada (" Green Springs") for $300,000 cash.

Green Springs covers an area of 1498 acres and lies approximately 5 miles south of Ely Gold's Mt Hamilton project which is currently in the permitting process for mine development. The Mt Hamilton Project is being managed by Solitario Exploration & Royalty Corp. (" Solitario"), under a joint venture agreement with Ely Gold whereby Solitario owns 80% and Ely Gold owns 20%. The Green Springs property is located 14 miles southeast of Midway Gold's (" Midway") Pan Deposit which is in the permitting process for mine development and 7 miles southeast of Midway's Goldrock project and 10 miles northwest of Pilot Gold's Griffon project. The mining claims at Green Springs were first staked by U.S. Minerals Exploration Company ("USMX") in 1979. USMX mined the property for gold as an open pit heap leach operation from 1988 to 1990.

The Green Springs Agreement contains standard terms and conditions, including due diligence results satisfactory to Ely Gold.  To ensure acquisition of a 100% interest, Ely Gold has arranged for termination of an existing option on the Green Springs claims, prior to closing, for $50,000.  However, the claims will be acquired subject to a 2% NSR.

Prior to signing the Agreement Ely Gold acquired a mining lease and 100% purchase option on two mining claims contiguous to the Green Springs Property (the " Cox Claims").  The lease on the Cox Claims has a term of 10 years with escalating advance royalty payments and a 100% purchase option. The first year advance royalty payment was $13,000 and included a significant amount of the historic drill data and production records from USMX.  Ely Gold has the option to purchase the claims for an amount equal to $200,000 less the aggregate of the annual advance royalty payments made prior to the date of exercise.  Title will be taken subject to an annual advance royalty of $25,000 until commencement of commercial production, after which a 2% NSR will be payable (after recovery of advance royalties and subject to a buy-down option for 1% for $500,000 in favor of Ely Gold)."We are very excited to secure a 100% interest to these properties in what has become a prime development area of Nevada," stated Trey Wasser, Ely Gold's President & CEO.

John Brownlie, Ely Gold's Executive Chairman commented, "The consolidating of this claim grouping at the site of past gold mining and the availability of the historical data makes this a very attractive project for Ely Gold as Mt. Hamilton progresses through the permitting process."

This press release has been read and approved by Stephen Kenwood, P. Geo, a director of the Company and the Company's Qualified Person.

On Behalf of the Board of Directors



1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
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!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • 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