Ely Gold Royalties Inc. said Aug. 8 that its Nevada Select Royalty Inc. unit agreed to option the Stateline property in Utah to privately held Pyramid Gold (US) Corp. in Nevada for about US$100,000.

The property comprises 11 unpatented claims.

Pyramid Gold is required to pay an initial US$5,000, while the remaining amount will be paid in tranches over four years. It may terminate the agreement at any time without further liability for future payments.

Additionally, Pyramid Gold must make advance royalty payments of US$15,000 on the first, second and third year after the final option payment, and US$25,000 on the fourth year and each year onward.

Nevada Select, meanwhile, will retain a 2% net smelter royalty on the claims.

Ely Gold was recently accepted for listing on the OTCQB platform in the U.S.