Element79 Gold Corp Shares Further Advances
With Chachas Community on Lucero Surface Rights, Provides Corporate
Update
VANCOUVER, BC -- October 28, 2024 --
InvestorsHub NewsWire - *Element79 Gold Corp.* (CSE: ELEM)
(OTC:
ELMGF) (FSE: 7YS0) ("Element79" or the "Company") is
pleased to announce additional progress towards obtaining approval
of its surface rights contract at the Lucero project in Peru,
through ongoing community engagement and recent approval at the
Chachas General Assembly.
Since
acquiring the Lucero mineral rights in mid-2022, Element79 Gold has
actively engaged with the Chachas community to secure support
critical for project success. On October 6,
2024, after more than 18 months of outreach and
collaboration, the Company received over 75% approval from the
community for its operational initiatives. This approval paves the
way for the negotiation of a 5-year revolving surface rights access
agreement.
The
formal request for surface rights was received and officially
recognized by the Chachas administration on October 18, 2024, with
contract negotiations expected to be finalized by the end of the
year. Several other mining projects in the region are undergoing
similar approvals, and the Chachas administration is anticipated to
approve multiple projects in parallel by year-end. The GAE
Consultores team that has been successful in achieving these recent
milestones is back in the community starting this week, to continue
the drive towards negotiating and forging the required agreements
between the Chachas community, the artisanal mining association
Lomas Doradas and Element79 Gold Corp.
Element79 CEO and Director James Tworek stated "While we are seeing
snow start in Nevada for the year, and being in the final queue
towards completing our surface rights contracts with Chachas and
Lomas Doradas, we turn our attention to advancing the most tangible
near-term resource development and revenue generation project in
our portfolio, the Lucero Tailings, to work on through the
winter. We believe the data gathering for this project will
be fastest and easiest to achieve given the four piles of tailings
are easily accessible for auguring. While the lab tests,
metallurgy and testing of innovative technologies to process the
tailings are underway, the planning of work flow on the project
from building the plant to processing and retiring the tailings in
their final resting places will carry on through the winter, along
with processes to permit the construction of the plant. We are
excited to get started on this high-value initiative, and will be
reporting through its multiple processes unfolding over time."
Lucero Tailings Project overview
As a
first step upon completion of the contracts with Chachas and Lomas
Doradas, the Company intends to focus its energies on the Lucero
Tailings project, which holds approximately 1.3 million metric tons
(MMT) of flotation-treated, dry-stacked tailings estimated to yield
around 50,000 ounces of gold equivalent, the Company is undertaking
a 43-101 compliant Mineral Resource Estimate and a Pre-Economic
Assessment (PEA) on the tailings. These studies will assess the
Tailings project's value today, economic viability, process flow,
and capacity for up to 2.5MMT of tailings to account for both
current and future material.
Element79 is also focused on securing permits from the state of
Arequipa for the construction of an on-site processing plant. The
Company has already been in contact with the proper departments of
the State of Arequipa regarding permitting approval and will
formally start the estimated 4-6-month process to obtain this
permit upon completion of the agreements with Chachas. This
timeline dovetails with the rainy season that prevents access to
the Lucero mine from December to April given its current level of
infrastructure. Once approvals are in place, plant
construction is estimated to take approximately 90 days. The plant
will not only process tailings materials but can also expand to
include raw ore milling and flotation, improving efficiency and
reducing multiple costs for both Element79 and local artisanal
miners.
Recent Corporate Updates
Pursuant to its press release of October 7, 2024, the Company has
issued 7,862,421 common shares to certain of its creditors (the
"Settlement Shares") in exchange for outstanding accounts payable
(the "Shares for Debt Transaction") in the aggregate amount of
CA$1,022,115 (the "Debt") owing to certain creditors (the
"Creditors"), primarily management, board of directors and
principal consultants of the Company for backdated pay. The
Settlement Shares are being issued at a price of $0.13, in
accordance with the policies of the Canadian Securities Exchange
(the "CSE").
As previously announced the Company is completing the Shares for
Debt Transaction to improve its financial position by reducing its
existing liabilities. All Settlement Shares will be subject to a
four-month and one-day hold period. No new control person of the
Company will be created pursuant to the Shares for Debt
Transaction. The Shares for Debt Transaction constitutes a "related
party transaction" within the meaning of Multilateral Instrument
61-101 - Protection of Minority Security Holders in Special
Transactions ("MI 61101") as Stack Asset Management Ltd., a company
controlled by James Tworek (CEO and Director of the Corporation);
Neil Pettigrew, (Director of the Corporation); Frontier Advisory (a
corporation controlled by Warren Levy, Director of the
Corporation); Zara Kanji, (Director of the Corporation); Tammy
Gillis (CFO of the Corporation); Monita Faris, (Corporate
Secretary of the Corporation); and Dry Gulch Investments LLC
(a corporation controlled by Kim Kirkland, Chief Operating Officer
of the Corporation), have all been issued Settlement Shares in
connection with the debt settlement. The Company is relying on the
exemptions from the valuation and minority shareholder approval
requirements of MI 61-101 contained in sections 5.5(a) and
5.7(1)(a) of MI 61-101, as the fair market value of the shares for
debt transaction with the forgoing insiders does not exceed 25% of
the market capitalization of the Company, as determined in
accordance with MI 61-101. The Company did not file a material
change report in respect of the related party transaction at least
21 days before the closing of the debt settlement, which the
Company deems reasonable in the circumstances as the Company wishes
to improve its financial position by reducing its existing
liabilities.
The Company did not file a material change report more than 21 days
before the expected closing of the Shares for Debt Transaction,
which it considers reasonable in the circumstances, as the
participation in the transaction by a related party of the Company
was not definitive until shortly prior to the closing of the Shares
for Debt Transaction and the Company was attempting to close the
transaction expeditiously.
About Element79 Gold Corp.
Element79 Gold is a mining company focused on gold and silver,
committed to maximizing shareholder value through responsible
mining practices and sustainable development of its projects.
Element79 Gold's focus is on developing its past-producing,
high-grade gold and silver mine, the Lucero project located in
Arequipa, Peru, with the intent to restart production in 2025.
The
Company also holds a portfolio of 5 properties along the Battle
Mountain trend in Nevada, with the Clover and West Whistler
projects believed to have significant potential for near-term
resource development. Three properties in the Battle Mountain
Portfolio are under contract for sale to Valdo Minerals Ltd., with
an anticipated closing date in the first half of 2024.
The
Company has an option to acquire a 100% interest in the Dale
Property, 90 unpatented mining claims located approximately 100 km
southwest of Timmins, Ontario, and has recently announced that it
has transferred this project to its wholly owned subsidiary,
Synergy Metals Corp, and is advancing through the Plan of
Arrangement spin-out process.
For
more information about the Company, please visit www.element79.gold
Contact Information
For
corporate matters, please contact:
James C. Tworek, Chief Executive Officer
E-mail: jt@element79.gold
For
investor relations inquiries, please contact:
Investor Relations
Department
Phone: +1.403.850.8050
E-mail: investors@element79.gold
Cautionary Note Regarding Forward Looking
Statements
This
press contains "forward-looking information" and "forward-looking
statements" under applicable securities laws (collectively,
"forward-looking statements"). These statements relate to future
events or the Company's future performance, business prospects or
opportunities that are based on forecasts of future results,
estimates of amounts not yet determinable and assumptions of
management made considering management's experience and perception
of historical trends, current conditions and expected future
developments. Forward-looking statements include, but are not
limited to, statements with respect to: the Company's business
strategy; future planning processes; exploration activities; the
timing and result of exploration activities; capital projects and
exploration activities and the possible results thereof;
acquisition opportunities; and the impact of acquisitions, if any,
on the Company. Assumptions may prove to be incorrect and actual
results may differ materially from those anticipated. Consequently,
forward-looking statements cannot be guaranteed. As such, investors
are cautioned not to place undue reliance upon forward-looking
statements as there can be no assurance that the plans, assumptions
or expectations upon which they are placed will occur. All
statements other than statements of historical fact may be
forward-looking statements. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives or future events or performance
(often, but not always, using words or phrases such as "seek",
"anticipate", "plan", "continue", "estimate", "expect", "may",
"will", "project", "predict", "forecast", "potential", "target",
"intend", "could", "might", "should", "believe" and similar
expressions) are not statements of historical fact and may be
"forward-looking statements".
Neither the Canadian Securities Exchange nor
the Market Regulator (as that term is defined in the policies of
the Canadian Securities Exchange) accepts responsibility for the
adequacy or accuracy of this release.