ELYGF - Ely Gold Royalties (ELYGF)(ELY:CA) - Expands Nevada Portfolio with Acquisition of Three Royalties

Ely adds three Nevada royalties. Ely Gold Royalties executed a purchase agreement for a package of three net smelter returns (NSR) royalties on properties in Nevada from a third party for US$350 thousand. The royalties include a 0.33% NSR on the Sleeper Gold Mine Project owned by Paramount Gold Nevada Corp., a 1.0% NSR on 38 mining claims associated with Coeur Mining's Lincoln Hill and Gold Ridge properties and a 1.0% NSR on 40 acres of ground associated with Waterton Global's Mt. Hamilton project. The transaction is expected to close on or around September 15, 2020.Outlook for precious metals prices remains favorable. On August 11, gold and silver futures fell 5.5% and 14.6%, respectively, following gains of 12.8% and 57.0% since the end of the second quarter through August 10. A stronger U.S. dollar, higher Treasury yields and factors, such as potential remedies associated with COVID-19, favoring risk assets were all cited as causes for the profit-taking. While a pullback is not unusual following recent gains, we believe the outlook for gold and silver prices remains favorable despite the potential for greater volatility.Rating remains Outperform. While ELYGF shares traded down 7.4%, we believe the pullback offers an attractive entry point for investors. Ely has made several significant transactions in recent months that are expected to accelerate revenue and cash flow growth and has ample financial flexibility for additional royalty acquisitions.Read More >>