Ely Gold purchases royalty on property surrounding future IAMGOLD’s Coté gold mine
|Image credit: Ely Gold.|
(Kitco News) - Ely Gold Royalties (TSX-V:ELY, OTC-QX:ELYGF) announced Tuesday that it had closed the purchase of a 1% net smelter returns royalty from Sanatana Resources (TSX-V:STA) that was announced on September 29, 2020.
Ely Gold acquired the Watershed royalty from Sanatana for a total consideration of $2,500,000 in cash and 1,000,000 Ely Gold warrants.
The Watershed Property surrounds the Coté gold project, a joint venture between IAMGOLD (70%) and Sumitomo Metal Mining Company (30%), which demonstrates potential to produce 460,000 ounces of gold annually at low all-in sustaining costs of approximately $700 per ounce in the first six years of production with an 18-year mine life.
Coté is located in northern Ontario, approximately 20 km southwest of Gogama and 130 km southwest of Timmins. Coté is now scheduled to become one of Canada’s largest gold mines as a production decision by the partners, and ground-breaking was announced in July 2020.
President & CEO Trey Wasser commented, “We are excited to be a part of one of Canada’s largest gold mines. While the Watershed royalty may be a longer-term investment, the existence of the deferred payments makes the purchase a compelling value and an excellent addition to the growth profile of our royalty portfolio. We continue to see compelling value in royalty investment, like Coté, on long-lived gold assets in key mining jurisdictions.”
Ely Gold Royalties is a Nevada-focused gold royalty company. Its current portfolio includes royalties at Jerritt Canyon, Goldstrike, and Marigold, three of Nevada’s largest gold mines, as well as the Fenelon mine in Quebec, operated by Wallbridge Mining.