Ely Gold Royalties Inc. subsidiary Nevada Select Royalty Inc. agreed to option the North Carlin gold project in Nevada to a unit of Fremont Gold Ltd.

To acquire a 100% stake in the project, Fremont unit Intermont Exploration LLC will pay US$267,500 and issue 200,000 Fremont shares to Ely Gold over five years.

After exercising the option, Nevada Select will be entitled to a 2% net smelter returns royalty with Fremont holding the right to buy down 1% of the NSR for US$3 million.

The North Carlin project comprises 12 unpatented mining claims.

Fremont and Ely Gold entered into a similar deal in January for the Gold Canyon property.