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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

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

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG

Markets

DOW 17,856.78 -278.94 -1.54%
S&P 500 2,071.26 -29.78 -1.42%
NASDAQ 4,927.37 -55.4390 -1.11%

Partners Compare Online Brokers

Free Reports

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