After Fremont Gold (FRE.V) completed the sale of its Gold Canyon project to McEwen Mining (MUX, MUX.TO) which operates the nearby Gold Bar mill, McEwen Mining appears to be very interested in securing the whole area as it has now also purchased the Gold Bar claims from Ely Gold. As a reminder, Gold Bar is where Fremont Gold drilled in the first quarter of this year and as the assay results didn’t contain any noticeable results, Fremont decided to let its earn-in option lapse where after the project returned to Ely.
As consideration for the sale, Ely Gold will receive 53,600 shares of McEwen Mining, which will also reimburse an Ely subsidiary for in excess of C$50,000 in claim fees and taxes. Ely will also retain a 2% NSR on both the patented and unpatented claims, of which McEwen Mining will be able to repurchase 1% of the NSR on the patented claims for US$1M and a similar percentage on the unpatented claims for US$2M.
Disclosure: The author has no position in Ely Gold nor McEwen Mining, but still has a long position in Fremont Gold.