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Ely Gold Closes Royalty Sale and Private Placement with Eric Sprott

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Ely Gold Royalties Inc. (TSX-V: ELY) (OTCQB: ELYGF) or the  is pleased to announce that it has closed its previously announced royalty sale and private placement with 2176423 Ontario Ltd., a company controlled by Eric Sprott. Sprott has acquired 100% of all rights and interests in a 1.0% (one percent) net smelter returns royalty on the Fenelon Mine Property, operated by Wallbridge Mining Company Limited, located in west-central, Quebec. Under the terms of the Agreement, Sprott paid Ely Gold a cash consideration of US$1,250,000, (approximately CAN$1,673,360) for the Fenelon Royalty. (see press release dated June 10, 2019.)


Subsequent to the sale, Ely Gold will retain a 2.0% royalty on the Fenelon Mine Property.


In a separate transaction, Sprott has subscribed to a previously announced Ely Gold private placement consisting of 5,615,454 Ely Gold units at a price of CAN$0.18 per Unit for gross proceeds of CAN$1,010,782 (see press release dated June 10, 2019). Each Unit will comprise one common share and one-half of a non-transferable common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share for a period of three (3) years at an exercise price of $0.30. The Company paid a 6.0% placement arrangement fee and 6% in warrants to, Medalist Capital Ltd., an arm’s length registered dealer.


All securities issued and issuable in the Placement will be subject to a four-month hold period from the closing date. The Placement, including the payment of the arrangement fee, is subject to Exchange final acceptance. The net proceeds from the Placement will be used for the Company’s project generative activities and for general corporate expenses. The placement will result in Sprott holding 5.7% of Ely Gold shares and 8.3% if warrants are exercised.


About Ely Gold Royalties Inc.


Ely Gold Royalties Inc. is a Vancouver-based, emerging royalty company with development assets focused in Nevada and Quebec. Its current portfolio includes 33 Deeded Royalties and 20 properties optioned to third parties. Ely Gold’s royalty portfolio includes producing royalties, fully permitted mines and development projects that are at or near producing mines. The Company is actively seeking opportunities to purchase existing third-party royalties for its portfolio and all the Company’s option properties are expected to produce royalties, if exercised. The royalty and option portfolios are currently generating significant revenue. Ely Gold is well positioned with its current portfolio of over 20 available properties to generate additional operating revenue through option and sale agreements. The Company has a proven track record of maximizing the value of its properties through claim consolidation and advancement using its extensive, proprietary data base. All portfolio properties are sold or optioned on a 100% basis, while the Company retains royalty interests. Management believes that due to the Company’s ability to generate third-party royalty agreements, its successful strategy of organically creating royalties, its equity portfolio and its current low valuation, Ely Gold offers shareholders a low-risk leverage to the current price of gold and low-cost access to long-term mineral royalties.


Posted July 2, 2019

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