Solitario & Ely Gold Close Transaction to Sell Their Interests in the Mt. Hamilton Gold Project to Waterton for Total Conside...
26 8월 2015 - 5:32AM
Business Wire
Solitario Exploration & Royalty Corp. (NYSE MKT: XPL;
TSX: SLR) (“Solitario”) and Ely Gold & Minerals Inc.
(TSX.V: ELY) (“Ely Gold”, and together with Solitario, the
“Sellers”) are pleased to announce that they have closed the
previously announced agreement (see news release dated June 11,
2015) to sell their combined interests in the Mt. Hamilton gold
project (“Mt. Hamilton”) to Waterton Nevada Splitter, LLC, a
wholly-owned subsidiary of Waterton Precious Metals Fund II Cayman,
LP (collectively, “Waterton”), for total cash proceeds of US$30
million (the “Transaction”). The Transaction was structured as the
sale of the Sellers’ membership interests in Mt. Hamilton LLC
(“MH-LLC”), a limited liability company that held 100% of the Mt.
Hamilton assets. Shareholders of Solitario and Ely Gold recently
approved the Transaction.
Solitario received gross proceeds of $24 million for its 80%
interest in MH-LLC, and DHI Minerals (U.S.) Ltd., Ely Gold’s
wholly-owned U.S. subsidiary, received gross proceeds of $6 million
for its 20% interest in MH-LLC. Concurrently with the closing of
the Transaction, Solitario paid its outstanding US$5 million
corporate credit facility with RMB Australia Holdings Limited, plus
approximately $7,000 in accrued interest and fees.
Chris Herald, President and CEO of Solitario, stated: “We are
pleased to have successfully closed our transaction with Waterton.
We are now debt free and have a strong balance sheet to seek new
opportunities and to implement other value enhancing activities for
our shareholders. We will now be able to highlight our
fully-carried to production interest in the high-grade Bongará zinc
project being advanced by Compañía Minera Milpo S.A.A., our
Peruvian partner. With Waterton as the new owner of Mt. Hamilton,
we believe the project can more rapidly advance towards
construction and subsequent production. We want to wish Waterton
all the best, not only on Mt. Hamilton, but all of their activities
in Nevada.”
Trey Wasser, President and CEO of Ely Gold, stated: “This sale
will provide Ely with the capital to focus on advancing our 100%
owned Green Springs project, located just seven miles south of Mt.
Hamilton. Green Springs is fully permitted for exploration and we
expect to begin a drill program this fall.”
Isser Elishis, Managing Partner and Chief Investment Officer of
Waterton’s investment adviser, said, “We are pleased to have
completed the purchase of Mt. Hamilton from Solitario and Ely Gold.
The acquisition of Mt. Hamilton will add another key development
asset to Waterton’s growing portfolio of high-quality Nevada
assets.”
Advisors and Legal Counsel
Maxit Capital LP acted as financial advisor to both Solitario
and Ely Gold and provided fairness opinions to their respective
boards of directors. Solitario’s US legal counsel is Davis Graham
& Stubbs LLP and Polsinelli PC, and its Canadian legal counsel
is Fogler Rubinoff LLP. Ely Gold’s US legal counsel is Parsons
Behle and Latimer LLP and its Canadian legal counsel is Holmes
& King. Waterton’s US legal counsel is Parr Brown Gee and
Loveless PC and its Canadian legal counsel is Davies Ward Phillips
& Vineberg LLP.
About Solitario
Solitario is a precious and base metal exploration and royalty
company. Recently, a significant focus of Solitario’s has been on
financing and potentially developing the Mt. Hamilton gold project
in Nevada. Solitario controls an 80% interest in Mt. Hamilton.
Besides Solitario’s interest in Mt. Hamilton, Solitario also has a
significant joint venture with Milpo Mining, Votorantim Metais’s
51%-owned affiliate, on its advanced Bongará high-grade zinc
project in Peru. Additional information about Solitario is
available at www.solitarioxr.com.
About Ely Gold
Ely Gold is focused on the acquisition and development of gold
resources in Nevada, including its Green Springs property, 7 miles
south of Mt. Hamilton. Ely Gold is traded on the TSXV. Additional
information about Ely Gold is available online at
www.elygoldandminerals.com.
About Waterton
Waterton is a leading mining-focused private equity firm
dedicated to developing high quality precious and base metals
projects located in stable jurisdictions. Waterton’s
cross-functional, fully-integrated, in-house team of professionals
have significant mining, financial and legal expertise. Waterton’s
proactive approach to asset management, significant sector
knowledge and ability to leverage extensive industry relationships
has resulted in a strong track record of managing investments in
the metals sector. Additional information about Waterton is
available online at www.watertonglobal.com.
This press release contains certain "forward-looking
statements," as defined in the United States Private Securities
Litigation Reform Act of 1995, and within the meaning of Canadian
securities legislation. Forward-looking statements are statements
that are not historical fact. They are based on the beliefs,
estimates and opinions of the Sellers’ managements on the date the
statements are made and they involve a number of risks and
uncertainties. Consequently, there can be no assurances that such
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements. The Sellers undertake no obligation to update these
forward-looking statements if their managements’ beliefs, estimates
or opinions, or other factors, should change, unless required by
law, including the rules and regulations of the NYSE MKT or the
TSXV.
Neither the NYSE MKT nor TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy and
accuracy of this press release.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150825006289/en/
SolitarioDebbie Mino-Austin, (800) 229-6827Director – Investor
RelationsorChristopher E. Herald, (303) 534-1030President &
CEOorEly GoldSteve Kenwood, (604) 488-1104DirectororTrey Wasser,
(972) 803-3087President & CEOorfor WatertonRiyaz Lalani, (416)
907-9365Bayfield Strategy, Inc.
Solitario Resources (TSX:SLR)
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