Solitario Receives $4.0 Million Payment from Sandstorm and Updates Activities on Its Mt. Hamilton Gold Project, Nevada
Solitario Exploration & Royalty Corp. (“Solitario;” NYSE MKT: XPL;
TSX: SLR) and Ely Gold & Minerals (“Ely Gold;” TSX.V: ELY)
are pleased to announce that the joint venture has received the second
and final payment of $4.0 million from Sandstorm Gold (NYSE MKT: SAND;
TSXV: SSL.V) for the sale of a NSR royalty on its Mt. Hamilton
gold-silver project in Nevada. On June 11, 2012 Solitario announced the
sale of a 2.4% NSR royalty for $10.0 million and received an initial
US$6.0 million payment from Sandstorm. The Mt. Hamilton gold project,
located in Nevada, U.S.A., is held by Mt. Hamilton LLC (“MH-LLC”) that
is 80%-owned by Solitario and 20%-owned by Ely.
As part of the agreement with Sandstorm, MH-LLC has an option to
repurchase up to 100% of the NSR for US$12 million, provided that
Solitario enters into a gold stream agreement with Sandstorm that has an
upfront deposit of no less than US$30 million. This option expires on
December 11, 2014. In addition, MH-LLC has provided Sandstorm with a
right of first refusal on any future royalty or gold stream financing
for the Mt. Hamilton project.
Mt. Hamilton Project Update
In 2012 Solitario achieved important milestones on its Mt. Hamilton gold
project in Nevada. These included:
-
In February the Mt. Hamilton Feasibility Study was completed
-
In June and August we secured important project financing from
Sandstorm Gold and RMB Australia Holdings Limited, respectively
-
In September we added new resources in the Seligman area
-
In the second half of 2012 we completed field work necessary to
evaluate the economic viability of the Seligman resource
-
In November the Plan of Operations was filed with the U.S. Forest
Service
In 2013 our focus will be on environmental permitting to allow for
project construction and subsequent gold and silver production. Other
activities include metallurgical testing of Seligman mineralization and
exploration drilling in the Wheeler Ridge area that lies immediately
south of the Centennial deposit. The Wheeler Ridge zone displays a large
gold in soils anomaly that measures approximately 5,000 feet long and up
to 1,000 feet wide. Only a very small area of this significant soil
anomaly has been drill tested.
Terms of the Mt. Hamilton LLC Joint Venture
Solitario and Ely Gold formed Mt. Hamilton LLC (“MH-LLC”), a limited
liability company which holds 100% of the Mt. Hamilton project assets
under an Operating Agreement. Per the terms of the Operating Agreement,
DHI-US, Ely Gold’s wholly owned US subsidiary, has a 20% interest in
MH-LLC and Solitario has an 80% interest.
About Solitario
Solitario is a gold, silver, platinum-palladium, and base metal
exploration, development and royalty company actively exploring in
Brazil, Mexico, Peru and Nevada. Solitario has significant business
relationships with Votorantim Metais and Anglo Platinum. Solitario is
traded on the NYSE MKT ("XPL") and on the Toronto Stock Exchange
("SLR"). Additional information about Solitario is available online at www.solitarioxr.com
.
About Ely Gold
Ely Gold is focused on the acquisition and development of gold resources
in North America. Ely Gold is traded on the TSX Venture Exchange
("ELY"). Additional information about Ely Gold is available online at www.elygoldandminerals.com.
This press release includes certain "Forward-Looking Statements"
within the meaning of section 21E of the United States Securities
Exchange Act of 1934, as amended. All statements, other than statements
of historical fact, included herein, including without limitation,
statements regarding potential mineralization and reserves, exploration
results and future plans and objectives of Solitario, are
forward-looking statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate
and actual results and future events could differ materially from those
anticipated in such statements. Development of Solitario’s
properties are subject to the success of exploration, completion and
implementation of an economically viable mining plan, obtaining the
necessary permits and approvals from various regulatory authorities,
compliance with operating parameters established by such authorities and
political risks such as higher tax and royalty rates, foreign
ownership controls and our ability to finance in countries that may
become politically unstable. Important factors that could cause actual
results to differ materially from Solitario’s expectations are disclosed
under the heading "Risk Factors" and elsewhere in Solitario’s documents
filed from time to time with Canadian Securities Commissions and the
United States Securities and Exchange Commission.
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.
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