An article was just published last night about how billionaire gold investor Eric Sprott recently sold 3.3 million shares of Kirkland Lake Gold (TSX: KL) for proceeds of CAD$168 million and has reinvested CAD$139.5 million of this money into 17 different small-cap gold, silver, and nickel companies. Click here to read this article!
Ely Gold Royalties (TSXV: ELY) has been Sprott's 11th largest investment in recent months, with Sprott investing a total of CAD$2.684 million into the company. The majority of Sprott's investment into ELY was non-dilutive and will actually result in ELY reporting a large net profit on the transaction!
Sprott paid ELY $1.673 million for a 1.0% NSR royalty on the Fenelon Mine Property, operated by Wallbridge Mining (TSX: WM), the #1 largest gaining TSX gold stock of the last twelve months! WM one year ago was trading for $0.08 with a market cap of only CAD$24 million, but over the last twelve months WM has exploded by 431.2% to $0.425 per share where its market cap is now up to CAD$192.58 million!
ELY previously invested a total of $1.2 million for a 3.0% NSR royalty on WM's Fenelon Mine. By selling a 1.0% NSR Fenelon Mine royalty to Sprott for $1.673 million, ELY will likely report a HUGE profit of $1.273 million on the transaction!
ELY still holds a 2.0% NSR royalty covering WM's Fenelon Mine and we expect ELY to begin earning HUGE royalty payments from it by year-end 2019! WM recently completed a 33,233 tonne bulk sample at Fenelon and recovered an incredible 19,037 oz of gold with unbelievably HUGE average gold grades of 18.49 g/t! WM is still exploring Fenelon to further expand its proven/probable gold reserve, but NIA is nearly 100% sure that it will soon become one of the world's highest grade producing gold mines and ELY will capitalize more off of WM's success than any other company!
Sprott has also just invested CAD$7 million into a WM private placement while investing CAD$1 million into an ELY private placement! As a gold royalty company, ELY's expenses will remain extremely low and we expect to see very little ELY dilution moving forward! ELY will likely become cash flow positive in the very near future and at that point look for ELY's market cap to rapidly readjust upward to $100-$150 million!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA has received compensation from ELY of USD$30,000 cash for a six-month marketing contract. Never make investment decisions based on anything NIA says. This message is meant for informational and educational purposes only and does not provide investment advice.