Balmoral Resources Ltd. entered into an agreement to sell the 1% net smelter returns royalty on the Fenelon gold-copper mine in Quebec to Ely Gold Royalties Inc.

Under the terms, Balmoral will receive a cash payment of C$500,000, 1 million shares and 1 million share purchase warrants of Ely Gold.

The company said Oct. 10 that the transaction will provide additional cash as it exceeds the currently estimated value of the royalty.

Balmoral will keep its exposure to Fenelon through its share ownership in Wallbridge Mining Co. Ltd., the current holder and operator of the mine.

Additionally, the company will gain exposure to the portfolio of mainly Nevada-focused gold royalty and property interests held by Ely Gold.