Vancouver-based Ely Gold Royalties (TSXV: ELY) announced that it has signed a definitive purchase agreement for the sale of 100% of its Old Gold Bar project to McEwen Mining Nevada, a wholly-owned subsidiary of Toronto-based McEwen Mining (NYSE: MUX) (TSX: MUX).
In a press release, the firms involved in the transaction said that to go ahead with the deal, McEwen will issue to Ely Gold 53,600 shares of its common stock in exchange for 100% ownership in the patented and unpatented claims where the project is situated.
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In addition, McEwen will reimburse Nevada Select, Ely’s US subsidiary, $38,096 for the 2020 claim fees and taxes, while Nevada Select will retain a 2% net smelter return royalty.
The Old Gold Bar project consists of 12 patented mining claims and 310 unpatented mining claims located in Elko County, Nevada.
The claims include the historic Gold Bar mine and mill, which produced 286,354 ounces of gold from 1986 to 1994 from the open-pit mine and the millsite deposit. The latter is considered a faulted offset of the historic Gold Bar mine and is located to the northwest of the open pit.
According to Ely, Fremont Gold optioned the property in 2017, completed a soil sampling program based on a new structural interpretation and identified coincident gold and mercury geochemical anomalies to the southeast of the historic Gold Bar mine.
“Fremont drilled two reverse-circulation drill holes at Gold Bar, totaling 492 metres. Results include 25.9m @ 4.66 g/t Au within a longer interval of 41.2m @ 3.08 g/t in hole GBR-1 at the historic Millsite deposit and 6.1m @ 1.22 g/t Au in hole GBR-2 immediately west of the historic open pit,” Ely’s media brief states.
