Eric Sprott Announces Voting Support Agreement for Gold Royalty's Proposed Acquisition of Ely Gold

June 21, 2021 at 19:37 PM EDT

Toronto, Ontario--(Newsfile Corp. - June 21, 2021) - Further to the joint press release of Ely Gold Royalties Inc. and Gold Royalty Corp. dated June 21, 2021, Eric Sprott announces that 2176423 Ontario Ltd., a company which Mr. Sprott beneficially owns, has entered into a voting support agreement with Gold Royalty in connection with Gold Royalty's proposed acquisition of all of the issued and outstanding common shares of Ely Gold (Ely Shares) by way of a statutory plan of arrangement (Arrangement) under the Business Corporations Act (British Columbia).

2176423 Ontario holds 36,496,594 Ely Shares and 16,903,715 Ely Share purchase warrants (Warrants), representing approximately 22.5% of the outstanding ELY Shares and 29.8% on a partially diluted basis assuming exercise of such Warrants.

Until the termination of the voting support agreement, 2176423 Ontario has agreed, among other things, to vote Ely Shares and Warrants, including Ely Shares issued thereunder (collectively, Securities) in favour of the Arrangement, to restrict dispositions of any Securities and to not take any action which might reasonably be regarded as likely to reduce the success of or interfere with the completion of the Arrangement.

Mr. Sprott intends to hold the Securities through 2176423 Ontario for investment purposes and to support the Arrangement, and, depending on market or other conditions, may acquire additional Securities of Ely Gold. If the Arrangement does not close or the voting support agreement is terminated, Mr. Sprott may acquire additional securities of Ely Gold including on the open market or through private acquisitions or sell the securities including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

Ely Gold is located at 595 Burrard Street, Vancouver, British Columbia, V7X 1K8. A copy of 2176423 Ontario's early warning report will appear on Ely Gold's profile on SEDAR at www.sedar.com and may also be obtained by contacting Mr. Sprott's office at (416) 945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/88228