Business
Ely Gold Options Gold Bar Project in Nevada to Fremont Gold
Vancouver, British Columbia--(Newsfile Corp. - September 13, 2017) - Ely Gold & Minerals ...
About this update from Hayasa Metals Inc.
[{"type":"text","content":"Ely Gold Options Gold Bar Project in Nevada to Fremont GoldVancouver, British Columbia--(Newsfile Corp. - September 13, 2017) - Ely Gold & Minerals Inc. (TSXV: ELY) (OTC Pink: ELYGF) (\"Ely Gold\" or the \"Company\") through its wholly owned subsidiary, Nevada Select Royalty, Inc (\"Nevada Select\") is pleased to announce that it has entered into a definitive option agreement with Fremont Gold Ltd. (TSXV: FRE) (\"Fremont\") through their wholly owned U.S. subsidiaries whereby Fremont can acquire a 100% interest in the Gold Bar project, located in Eureka County, Nevada. The total option amount (if completed) is US$1,000,000 and Nevada Select will retain a 2% net smelter returns royalty (\"NSR\"). The closing of the Option is subject to delivery of final documentation which is expected in October 2017 (the \"Closing Date\").The Gold Bar project consists of ninety-six (96) lode mining claims and twelve (12) patented claims (collectively the \"Gold Bar Claims\"). The property is located in the historic Gold Bar mining district within the southern part of the Cortez Mineral Trend. Gold Bar is a historic mine, formerly operated by Atlas Precious Metals which produced approximately 286,354 ounces of gold in the late 1980's and early 1990's. Nevada Select acquired the Gold Bar Claims through staking and by the purchase of the patented claims in two separate transactions.The OptionUnder the terms of the option agreement, the Company can earn a 100% interest in the Property by making an initial payment of US$10,000, followed by:$40,000 six months after the Closing Date$100,000 one year after the Closing Date$100,000 two years after the Closing Date$100,000 three years after the Closing date$200,000 four years after the Closing Date $400,000 five years after the Closing Date (the \"Final Option Payment\")In addition to the payments, the Company must pay advance royalty payments as follows:$25,000.00 on the first through third anniversary of the Closing Date; and$35,000.00 on the fourth anniversary of the Closing Date and on each anniversary thereafter.There are no work commitments or additional expenditures required other than Fremont's obligation to maintain the underlying agreements and claim maintenance fees per year of approximately US$20k. When the Final Option Payment is made, Nevada Select will retain a 2% NSR on the Gold Bar Cl...