ELY / GORO In October 2018 Ely Gold Royalties announced that it entered into a binding letter agreement with a private individual whereby Ely Gold, through its wholly-owned subsidiary Nevada Select Royalty, Inc. (“Nevada Select”), a Nevada corporation, acquired 100% of all rights and interests in the 0.75% (three quarters of one percent) Gross Receipts Royalty (the “Royalty”) of the Isabella Pearl Property (“Isabella Pearl” ), operated by Gold Resource Corp. (“GORO”) (NYSE American: 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% GRR on current reserves on the Isabella Claims;
- 2.5% NSR on the exploration ground at Isabella Pearl;
- 2.5% NSR at County Line;
- 2-3% NSR at Mina Gold; and
- 2% NSR on certain claims at Camp Douglas.
The Isabella property covers an area of approximately 2700 acres consisting of 153 unpatented mining claims in central Nevada’s Walker Lane Mineral Belt. The claims are all contiguous to Gold Resource’s 341 Isabella Pearl claims which they acquired in August of 2016 from an unrelated party. Gold Resource has retained several engineering firms out of Reno Nevada for additional engineering work, and is finalizing the Company’s in-house mine scheduling/capital expenditure requirement estimates for the project and the resubmittal of the Environmental Assessment (EA) to the BLM for a mining operations permit at Isabella Pearl.
In April 2019 Gold Resoruces Corp. announced that it completed its first gold pour from production at Isabella Pearl, ahead of schedule. This marks an important milestone for Ely as its first producing royalty.
Trey Wasser, Ely Gold’s President & CEO commented, “This first producing royalty marks a significant milestone for Ely Gold Royalties. We must commend GORO for an incredible achievement in constructing Isabella Pearl and reaching production in just 10 months. As Isabella Pearl is fully developed and the other satellite properties are fully explored, our royalty interests could become significant assets for Ely Gold. Our shareholders only need to look at GORO’s track record of development and expansion in their Mexico operations to envision the future of their Nevada Mining Unit. With the GORO team again operating at such a high level, we believe that the market will now begin to appreciate the long-term value in our large royalty position in GORO’s valuable Nevada assets.”
https://elygoldinc.com/properties/isabella-royalty