Published: November 6, 2018 |

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Ely Gold Royalties has entered into a binding letter agreement with a private individual where Ely Gold, through its wholly-owned subsidiary Nevada Select Royalty, will acquire 100 percent of all rights and interests in the 0.75 percent (three quarters of one percent) gross receipts royalty of the Isabella Pearl Property operated by Gold Resource Corp. (GORO). Isabella Pearl is located in Mineral County, Nevada and GORO anticipates mid-year 2019 production.

Ely’s purchase of the Isabella Pearl Royalty marks the fifth transaction that the company has completed in concert with GORO’s consolidation of its Nevada Mining Unit. Total Ely Gold property sales to GORO of US$1,500,000 have created the following royalty structure:

• 0.75 percent GRR on current reserves on the Isabella Claims
• 2.5 percent NSR on the exploration ground at Isabella Pearl
• 2.5 percent NSR at County Line
• 2-3 percent NSR at Mina Gold
• 2 percent NSR on certain claims at Camp Douglas

“We are very pleased to add this near term production royalty to our rapidly growing portfolio. Our relationship with GORO continues to be an important part of our strategic growth profile. The purchase of the Isabella Pearl near-term producing royalty, and the other development assets operated by GORO, are one of the important foundations of our royalty portfolio,” said Trey Wasser, president and CEO of Ely Gold Royalties.

“In addition to GORO, several of our option partners have now purchased multiple properties on which we hold option contracts or royalties. The ongoing purchases of multiple projects speaks to the quality of our properties and supports Ely Gold’s unique option model for generating revenue and royalties,” added Wasser.

On June 18, 2018, Gold Resource Corp. said it had officially begun construction activities with the Ledcor Group commencing clearing and grubbing operations in preparation of heap leachpad construction. Processing equipment including the crushing plant and radial stackers, previously purchased are being stored in a nearby laydown yard, are being readied for transport to the Project site. One of two previously drilled water wells have had its pump set and completed for on-site water supply. The Isabella Pearl Gold Project is GORO’s flagship property in its Nevada Mining Unit, which also contains the Mina Gold, County Line, and East Camp Douglas properties. Production is expected to begin in June 2019.

“We continue to see robust demand for our U.S.properties. The strong, continuous growth in revenue from our royalty and option portfolio is now allowing usto purchase near-term production royalties such as Isabella Pearl and Fenelon. Ely Gold has now successfully transitioned from a prospect generator to a royalty company with assets in production and steady exploration news flow,” said Jerry Baughman, president of Nevada Select.

About Ely Gold Royalties
Ely Gold Royalties Inc. is a Vancouver-based, emerging royalty company with development assets focused in Nevada and the Western US. Its current portfolio includes 27 Deeded Royalties and 24 properties optioned to third parties. Ely Gold’s royalty portfolio includes fully permitted mines, mines under construction and development projects that are being permitted for mine construction. The company is actively purchasing existing third-party royalties for its portfolio and all the company’s option properties will 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 transactions. The company has a proven track record of maximizing the value of its properties through claim consolidation and advancement using its extensive, proprietary database. All portfolio properties are sold or optioned on a 100 percent basis, while the company retains net smelter royalty interests. Management believes that due to the company’s ability to generate royalty transactions, 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.

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