VANCOUVER (miningweekly.com) – Days after announcing that it had consolidated ownership in its Mina Gold project, junior gold streamer Ely Gold & Minerals has agreed to sell the project to Colorado-based Gold Resource Corp for $1-million.
Under the terms of the deal, Gold Resource acquired 100% of the Mina Gold property for restricted common stock valued at $850 000 and a one-time advanced royalty cash payment of $150 000.
Nevada Select retains a net smelter return (NSR) royalty of 3% on the patented claims and a 2% NSR royalty on the unpatented claims. The company has the right to buy down 1% of the NSR royalty on the patented claims for $1-million and 0.5% of the NSR royalty on the unpatented claims for $500 000.
The Mina Gold property contains an historic third-party estimate of mineralised material totalling 1.61-million tonnes grading 1.88 g/t gold.