WHITE PINE COUNTY, Nev.,
Feb. 8, 2013 /PRNewswire/
-- Ely Gold & Minerals
Inc. (TSX-V: ELY), ("Ely
Gold") is pleased to announce that, through its wholly
owned subsidiary DHI Minerals (US) Ltd ("DHI"), it has entered into
a definitive agreement (the "Agreement") with Palladon
Ventures ("Palladon") to purchase 100% of 76 unpatented
mining claims in White Pine County
in eastern Nevada ("Green
Springs") for $300,000 cash.
Green Springs covers an area of 1498 acres and lies
approximately 5 miles south of Ely
Gold's Mt Hamilton project which is currently in the
permitting process for mine development. The Mt Hamilton Project is
being managed by Solitario Exploration & Royalty Corp.
("Solitario"), under a joint venture agreement with
Ely Gold whereby Solitario owns 80%
and Ely Gold owns 20%. The Green
Springs property is located 14 miles southeast of Midway Gold's
("Midway") Pan Deposit which is in the permitting process
for mine development and 7 miles southeast of Midway's Goldrock
project and 10 miles northwest of Pilot Gold's Griffon project. The
mining claims at Green Springs were first staked by U.S. Minerals
Exploration Company ("USMX") in 1979. USMX mined the property for
gold as an open pit heap leach operation from 1988 to 1990.
The Green Springs Agreement contains standard terms and
conditions, including due diligence results satisfactory to
Ely Gold. To ensure
acquisition of a 100% interest, Ely
Gold has arranged for termination of an existing option on
the Green Springs claims, prior to closing, for $50,000. However, the claims will be
acquired subject to a 2% NSR.
Prior to signing the Agreement Ely Gold acquired a mining lease
and 100% purchase option on two mining claims contiguous to the
Green Springs Property (the "Cox Claims"). The lease
on the Cox Claims has a term of 10 years with escalating advance
royalty payments and a 100% purchase option. The first year advance
royalty payment was $13,000 and
included a significant amount of the historic drill data and
production records from USMX. Ely
Gold has the option to purchase the claims for an amount
equal to $200,000 less the aggregate
of the annual advance royalty payments made prior to the date of
exercise. Title will be taken subject to an annual advance
royalty of $25,000 until commencement
of commercial production, after which a 2% NSR will be payable
(after recovery of advance royalties and subject to a buy-down
option for 1% for $500,000 in favor
of Ely Gold)."We are very excited to
secure a 100% interest to these properties in what has become a
prime development area of Nevada,"
stated Trey Wasser, Ely Gold's President & CEO.
John Brownlie, Ely Gold's Executive Chairman commented, "The
consolidating of this claim grouping at the site of past gold
mining and the availability of the historical data makes this a
very attractive project for Ely Gold
as Mt. Hamilton progresses through the permitting process."
This press release has been read and approved by Stephen Kenwood, P. Geo, a director of the
Company and the Company's Qualified Person.
On Behalf of the Board of Directors
Signed "Trey
Wasser"
Trey Wasser,
President & CEO
For further information, please contact Ely Gold & Minerals Inc. at
604-488-1104.
E-mail: trey@elygoldandminerals.com; Website:
www.elygoldandminerals.com
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. This news release may contain
forward-looking statements including but not limited to comments
regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential
mineral recovery processes, etc. Forward-looking statements address
future events and conditions and therefore, involve inherent risks
and uncertainties. Actual results may differ materially from those
currently anticipated in such statements.
SOURCE Ely Gold & Minerals
Inc.