ELMGF - Company Further Strengthens Balance Sheet by Entering Debt Settlement Agreement with Creditor
(TheNewswire)
VANCOUVER, BC / THENEWSWIRE / April26, 2023 – Element79 Gold Corp. (CSE:ELEM)(OTC:ELMGF)(FSE:7YS) (" Element79 Gold ", the " Company ") amining company focused on gold, silver and associated metals, providedan update to investors today by confirming the status of its equitydraw-down facility with Crescita Capital.
Clarification of Past CrescitaCapital Drawdowns
Since the most recent News Release regarding draws fromits Crescita Equity Investment Facility (September 19, 2022) , Element79 Gold confirms that it has completed intermittentdraws to fund operational capital, to strengthen its balance sheet,and exploration work totaling $1,250,500, issuing a total of22,700,000 shares in exchange during the same time period. Theremaining funds that can be drawn down from the Crescita EquityInvestment Facility, subject to the Company’s desire to do so, is$3,579,500 until May 5, 2025.
For more information about the Equity InvestmentFacility, please see the Company's press releases dated February 3,2022, and May 5, 2022.
"Crescita's continued support has beeninstrumental in providing short-term liquidity through the Company’s2021 and 2022 M&A activity, providing valuable flexibility tosustain operations through the more difficult second half of 2022 andalso to ramp up exploration programs underway at Lucero and MaverickSprings in 2023.” Comments James Tworek, CEO of Element79 GoldCorp. “While our Operations team continues to grow and manage workon our core projects, our Management and Board have been fosteringrelationships with strategic investors who seek to support the Companyand continue to execute our development strategies. We expect toannounce further 2023 capital raising initiatives shortly to funddevelopment at a more aggressive pace.”
Debt Settlement
The Company also announces that it has entered into adebt settlement agreement with an arms-length creditor (the"Creditor") to settle CAD$80,000.00 (the "DebtSettlement") of debt for services provided by the Creditor to theCompany.
In settlement and full satisfaction of the debt in theamount of CAD$80,000.00, the Company has agreed to issue to theCreditor 1,066,667 common shares in the capital of the Company (the"Common Shares") at a deemed issue price of $0.075 perCommon Share.
All Common Shares issued pursuant to the DebtSettlement are subject to a statutory hold period of four months plusa day from the date of issuance of the Common Shares in accordancewith applicable securities legislation.
About Element79 Gold
Element79 Gold is a mining company focused on gold,silver, and associated metals and committed to maximizing shareholdervalue through responsible mining practices and sustainable developmentof its projects. Element79 Gold's primary focus is on two coreproperties: Lucero Property in Arequipa, Peru, and its flagshipMaverick Springs Property in the gold mining district of northeasternNevada, USA. The Maverick Springs Property, located between the Elkoand White Pine Counties, hosts a 43-101- compliant, pit-constrained mineral resource estimatereflecting an inferred resource of 3.71 million ounces of goldequivalent "AuEq" at a grade of 0.92 g/t AuEq (0.34 g/t Auand 43.4 g/t Ag) with an effective date of October 19, 2022. Element79Gold also holds a portfolio of 15 properties along the Battle Mountaintrend in Nevada. As part of its Canadian operations, Element79 Goldhas the option to acquire a 100% interest in the Snowbird High-GradeGold Project, consisting of 10 mineral claims approximately 20km westof Fort St. James in Central British Columbia. The Company also hasthe option to acquire the Dale Property, comprised of 90 unpatentedmining claims in the Timmins Mining Division, Dale Township, inOntario, Canada. The Company is analyzing the non-core Nevada, Dale,and Snowbird projects for further merit of exploration, sale, orspin-out.
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, pleasecontact:
Investor Relations Department
Phone: +1.613.879.9387
E-mail: investors@element79.gold
Cautionary Note RegardingForward-Looking Statements
This press contains "forward?lookinginformation" and "forward-looking statements" underapplicable securities laws (collectively, "forward?lookingstatements"). These statements relate to future events or theCompany's future performance, business prospects or opportunities thatare based on forecasts of future results, estimates of amounts not yetdeterminable and assumptions of management made in light ofmanagement's experience and perception of historical trends, currentconditions and expected future developments. Forward-lookingstatements include, but are not limited to, statements with respectto: the Company's business strategy; future planning processes;exploration activities; the timing and result of explorationactivities; capital projects and exploration activities and thepossible results thereof; acquisition opportunities; and the impact ofacquisitions, if any, on the Company. Assumptions may prove to beincorrect and actual results may differ materially from thoseanticipated. Consequently, forward-looking statements cannot beguaranteed. As such, investors are cautioned not to place unduereliance upon forward-looking statements as there can be no assurancethat the plans, assumptions or expectations upon which they are placedwill occur. All statements other than statements of historical factmay be forward?looking statements. Any statements that express orinvolve discussions with respect to predictions, expectations,beliefs, plans, projections, objectives or future events orperformance (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 similarexpressions) are not statements of historical fact and may be"forward?looking statements".
Actual results may vary from forward-lookingstatements. Forward-looking statements are subject to known andunknown risks, uncertainties and other factors that may cause actualresults to materially differ from those expressed or implied by suchforward-looking statements, including but not limited to: the durationand effects of the coronavirus and COVID-19; risks related to theintegration of acquisitions; actual results of exploration activities;conclusions of economic evaluations; changes in project parameters asplans continue to be refined; commodity prices; variations in orereserves, grade or recovery rates; actualperformance of plant, equipment or processes relative tospecifications and expectations; accidents; labour relations;relations with local communities; changes in national or localgovernments; changes in applicable legislation or application thereof;delays in obtaining approvals or financing or in the completion ofdevelopment or construction activities; exchange rate fluctuations;requirements for additional capital; government regulation;environmental risks; reclamation expenses; outcomes of pendinglitigation; limitations on insurance coverage as well as those factorsdiscussed in the Company's other public disclosure documents,available on www.sedar.com. Although the Company has attempted toidentify important factors that could cause actual results to differmaterially from those contained in forward-looking statements, theremay be other factors that cause results not to be as anticipated,estimated or intended. The Company believes that the expectationsreflected in these forward?looking statements are reasonable, but noassurance can be given that these expectations will prove to becorrect and such forward?looking statements included herein shouldnot be unduly relied upon. These statements speak only as of the datehereof. The Company does not intend, and does not assume anyobligation, to update these forward-looking statements, except asrequired by applicable laws.
Neither theCanadian Securities Exchange nor the Market Regulator (as that term isdefined in the policies of the Canadian Securities Exchange) acceptsresponsibility for the adequacy or accuracy of this release.
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