Ely Gold's Three Charms
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An innovative business model, a one-of-a-kind database and deep roots in the world’s best mining jurisdiction are¬†Ely Gold’s three advantages, says CEO Trey Wasser.
Ely Gold Royalties (ELY:TSX.V; ELYGF:OTCQB) is an emerging-royalty company with development assets focused in Nevada and the Western U.S. Its portfolio of¬†31¬†deeded royalties and¬†19¬†optioned properties, ranging from ranges from fully permitted mines to projects that are being permitted for mine construction, are generating significant revenue.¬†
Ely Gold's innovative option/royalty model allows the company to sell 100% of its projects in an outright sale or on a four-year option contract. On every property Ely Gold retains a royalty on future production. All portfolio properties are sold or optioned on a 100% basis, while the company retains net smelter royalty interests.¬†
Wasser says the advantage to his model is that onerous work commitments are not placed¬†on the company¬†so the business can keep growing.¬†And the model has also allowed Ely Gold to¬†put more money to work.
"With the cash flow from the option portfolio last year we went out and bought two near-term producing royalties," says Wasser.
One of the projects was the Fenelon project in Quebec.¬†
"The Fenelon is a very exciting project. It has unbelievable grades. They are doing a bulk mining project, which is improving the infrastructure quite a bit."
Ely Gold’s database gives it a leg up in Nevada.¬†The company maximizes value through claim consolidation and advancement using its extensive, proprietary data base.¬†The company can analyze missed development opportunities¬†by uncovering¬†overlapping ownership claims.¬†¬†
"The title issues can be very tough to clean up, and that is what we specialize in,"¬†says Wasser.¬†
Nevada is a mining state, and this year it was ranked the world’s best mining jurisdiction in the world by the Fraser Institute.¬†
Ely Gold also got a stamp of approval from a heavy-hitter¬†Sprott Resource Holdings, which now holds 9 ¬Ĺ%.¬†
"While we really didn’t need the capital, one of our goals for 2108 was more institutional ownership,¬†so we couldn’t have asked for a better institution than Sprott," says Wasser.¬†