$ELYGF to acquire an undivided 100% interest in t
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Posted On: 07/26/2019 9:10:26 AM
$ELYGF to acquire an undivided 100% interest in the past-producing Green Springs gold project, located in White Pine County, Nevada (the "Purchase Option"
.
The Green Springs property consists of 218 unpatented mining claims owned by Ely Gold and 2 leased unpatented mining claims. The Purchase Option includes an assignment of the leased claims. The Green Springs property hosts a past-producing heap-leach gold mine that produced 72,000 ounces of gold from a series of shallow pits, less than 100 meters deep, at an average grade of 2.32 g/t Au in the late 1980's for US Minerals Exploration. The property hosts a widespread and shallow Carlin-type gold system, hosted within Mississippian rocks of the Chainman and Joanna limestone formations, associated with de-carbonatization, silicification, jasperoid development, and typical pathfinder elements including Arsenic, Antimony, Mercury, and Thallium. Green Springs is an early stage exploration property and does not contain any mineral resource estimates as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101".
Summary Terms of Agreement:
To acquire a 100% interest in the Green Springs project Contact Gold shall make the following payments and share consideration:
2,000,000 common shares of Contact Gold, US$25,000, and the reimbursement of prepaid claims fees relating to Green Springs upon entry into the Purchase Option (the "Closing"
US$50,000 on the first anniversary of the Purchase Option
US$50,000 on the second anniversary of the Purchase Option
US$50,000 on the third anniversary of the Purchase Option
US$100,000 on the fourth and final anniversary of the Purchase Option
Anniversary payment amounts may be made in cash or in Contact Gold's common shares at Contact Gold's election. Payment of all amounts can be accelerated and completed at any time. One million of the shares issued at Closing will be restricted for 24 months. The issuance of all common shares is subject to statutory hold periods pursuant to U.S. and Canadian securities regulations, and conditional upon the approval of any required governmental or regulatory authority, including the TSX Venture Exchange (the "TSXV".
Ely Gold will retain a 1% net smelter royalty on 76 core claims and a 0.75% royalty on the 2 leased claims. There is no buy-down provision to the royalties.
The transaction, and the issuance of Contact Gold's common shares pursuant to the Purchase Option Agreement are subject to acceptance by the TSXV.
Trey Wasser, Ely Gold's President & CEO commented, "We are pleased to add another high-quality exploration partner to our option portfolio. With the recent strength in gold prices and gold stocks, this will be an excellent asset addition to our equity portfolio."
. The Green Springs property consists of 218 unpatented mining claims owned by Ely Gold and 2 leased unpatented mining claims. The Purchase Option includes an assignment of the leased claims. The Green Springs property hosts a past-producing heap-leach gold mine that produced 72,000 ounces of gold from a series of shallow pits, less than 100 meters deep, at an average grade of 2.32 g/t Au in the late 1980's for US Minerals Exploration. The property hosts a widespread and shallow Carlin-type gold system, hosted within Mississippian rocks of the Chainman and Joanna limestone formations, associated with de-carbonatization, silicification, jasperoid development, and typical pathfinder elements including Arsenic, Antimony, Mercury, and Thallium. Green Springs is an early stage exploration property and does not contain any mineral resource estimates as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101"
. Summary Terms of Agreement:
To acquire a 100% interest in the Green Springs project Contact Gold shall make the following payments and share consideration:
2,000,000 common shares of Contact Gold, US$25,000, and the reimbursement of prepaid claims fees relating to Green Springs upon entry into the Purchase Option (the "Closing"
US$50,000 on the first anniversary of the Purchase Option
US$50,000 on the second anniversary of the Purchase Option
US$50,000 on the third anniversary of the Purchase Option
US$100,000 on the fourth and final anniversary of the Purchase Option
Anniversary payment amounts may be made in cash or in Contact Gold's common shares at Contact Gold's election. Payment of all amounts can be accelerated and completed at any time. One million of the shares issued at Closing will be restricted for 24 months. The issuance of all common shares is subject to statutory hold periods pursuant to U.S. and Canadian securities regulations, and conditional upon the approval of any required governmental or regulatory authority, including the TSX Venture Exchange (the "TSXV"
. Ely Gold will retain a 1% net smelter royalty on 76 core claims and a 0.75% royalty on the 2 leased claims. There is no buy-down provision to the royalties.
The transaction, and the issuance of Contact Gold's common shares pursuant to the Purchase Option Agreement are subject to acceptance by the TSXV.
Trey Wasser, Ely Gold's President & CEO commented, "We are pleased to add another high-quality exploration partner to our option portfolio. With the recent strength in gold prices and gold stocks, this will be an excellent asset addition to our equity portfolio."
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