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Ely Gold Royalties (TSXV: ELY) (OTCQX: ELYGF) Options the Aurora West Property, Nevada to Goldcliff Resources
Historic District Includes Operating Mill Vancouver, British Columbia--(Newsfile Corp. - Octo...
About this update from Goldcliff Resource Corporation
[{"type":"text","content":"Ely Gold Royalties (TSXV: ELY) (OTCQX: ELYGF) Options the Aurora West Property, Nevada to Goldcliff ResourcesHistoric District Includes Operating MillVancouver, British Columbia--(Newsfile Corp. - October 8, 2020) - Ely Gold Royalties Inc. (TSXV: ELY) (OTCQX: ELYGF) (\"Ely Gold\" or the \"Company\") through its wholly owned subsidiary, Nevada Select Royalty, Inc. (\"Nevada Select\"), has entered into an option agreement with Goldcliff Resource (US) Inc., a wholly owned subsidiary of Goldcliff Resource Corporation (TSXV: GCN) (OTC Pink: GCFFF) (collectively \"Goldcliff\") whereby Goldcliff will have the option to acquire a 100% interest in the Aurora West Property located in Mineral County, Nevada (the \"Option Agreement\"). The Option Agreement was executed on October 7, 2020 (\"the \"Closing\") and does not require any additional approvals. Nevada Select will retain a two percent (2%) net smelter return royalty (\"NSR\")The Option AgreementGoldcliff may acquire 100% of the Aurora West Property for a total purchase price of US$425,000. and the Option Agreement provides for the following payments: paying Nevada Select US$25,000 at Closing;paying the Third-Party US$50,000 on September 23, 2021;paying the Third-Party US$135,000 on September 23, 2021 (at which point Nevada Select will take possession of the Aurora West Property from the Third-Party) making a final payment of US$200,000 to Nevada Select on the fourth anniversary of Closing.In addition, Goldcliff will reimburse Nevada Select US$9,039 for 2020 claim fees at Closing. The Third-Party will retain a 1% NSR. The private company royalty may be bought down by 0.5% at any time by payment of US$1,000,000. Nevada Select will retain a 2% NSR with no buydowns. The Option Agreement will include a one (1) mile area of interest. There are no work commitments associated with the Option Agreement.The Aurora West Property The Aurora West property consists of 51 claims and is contiguous with the northwest portion of the main Aurora district claims held by Hecla Mining Company. Nevada Select is currently optioning the Aurora West Property from a private company (the \"Third-Party\"). Hecla's holdings include a fully permitted, recently operated 350 TPD mill. The Aurora district has historically produced gold from low sulfidation, quartz-adularia bonanza veins. Bonanza grades were mined wh...