Wednesday, September 30, 2020
Ely Gold Royalties (ELYGF)(ELY:CA)
Purchase of Royalty Would Provide Exposure to Cote Gold Project in Ontario
As of April 24, 2020, Noble Capital Markets research on Ely Gold Royalties is published under ticker symbols (ELYGF and ELY:CA). The price target is in USD and based on ticker symbol ELYGF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. Ely Gold Royalties Inc is an emerging royalty company with producing and development assets focused in Nevada and the Western US. It offers shareholders a low-risk leverage to the current price of gold and low-cost access to long-term gold royalties.
Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Proposed acquisition of the Watershed Royalty. Ely Gold Royalties agreed to purchase a 1% net smelter returns royalty on mining claims in Ontario, Canada from Sanatana Resources Inc. (TSXV, STA, Not Rated). The Watershed Royalty surrounds the Cote Gold Project which is a joint venture between IAMGOLD (NYSE, IAG, Not Rated) and Sumitomo Metal Mining Company. Consideration includes C$2.5 million in cash and 1 million Ely Gold warrants with an approximate value of C$500 thousand.
Transaction contingencies. Completion of the royalty sale is subject to: 1) receipt by Sanatana of a waiver from IAMGOLD of its right of first refusal (ROFR), 2) negotiation of a definitive agreement, and 3) approval of the TSX Venture Exchange (TSXV). In the event IAMGOLD exercises the ROFR, Sanatana will pay a break-up fee of C$500 thousand to Ely Gold …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
