ELYGF - Streetwise Reports Examines How Ely Gold's New Option/Royalty Model Provides Opportunities
SAN FRANCISCO, March 01, 2019 (GLOBE NEWSWIRE) -- Ely Gold Royalties Inc. (ELY:TSX.V; ELYGF:OTCQB) has turned the parameters and expectations of a typical project generator around by substituting the traditional joint venture business model with its Option/Royalty Model.
Company mentioned: Ely Gold Royalties Inc.
Trey Wasser, Ely Gold's President and CEO, told Streetwise Reports, "In just three years, Ely Gold, armed with a large database of Western U.S. properties and a growing reputation for generating new underexplored projects, has built a top-quality portfolio of royalties and option properties."
The company's partners include majors, mid-tier producers and junior exploration companies. Under Ely Gold's Option/Royalty Model, the company sells 100% of its projects in an outright sale or a four-year option contract. On every property, Ely Gold retains a royalty on future production.
With Ely Gold's Option/Royalty Model, the option payments are escalating annual payments with a final balloon payment. Should the project partner make the last payment, it earns 100% of the property, and Ely Gold retains a royalty on any future production. If the partner doesn't make the last payment, Wasser explained, "The property is returned to us 100%, thereby allowing us to evaluate the work completed and return the project to our property portfolio."
Wasser also discussed another aspect of Ely Gold's projects. "Besides the favorable structure and data, another important reason for the rapid success of our Option/Royalty Model is the quality of our projects. Our core strength lies in being able to consolidate underexplored land packages for our partners. Some of the best undeveloped properties in Nevada and the Western U.S. have 'conflicting' claims problems that may have existed for years or even decades. We have the ability and patience to get the claim issues resolved and fully consolidate a property package."
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