ELMGF - Element79 Announces Asset Transfer and Sale of Wholly Owned Subsidiary Synergy Metals Corp.
(TheNewswire)
VANCOUVER, BC -TH he N ewswire - July 17, 2023 –Element79 Gold Corp. (CSE:ELEM) (OTC:ELMGF) (FSE:7YS)(" Element 79Gold ", the " Company ") amining company focused on gold, silver and associated metals,announces that it has approved the transfer of all rights and datarelated to the Dale property, a gold exploration project in Ontario,Canada to its newly-created, wholly-owned subsidiary, Synergy MetalsCorp ("Synergy Metals"). The Company also plans to spin outand sell Synergy Metals through a Plan of Arrangement.
"The transfer of the Dale property to SynergyMetals will help unlock the property's true value and potential whileallowing the Company to continue focusing on its core assets,"said James Tworek, President and CEO of Element79. "Theanticipated spin out and sale of Synergy Metals will also provideadditional capital for the Company's growth and offer Element79'sshareholders an opportunity to participate in a new independentexploration-focused company with a promising goldproject."
Further details on the proposed transaction will beannounced in due course, including the timing, valuation, anddistribution of Synergy Metals shares to Element79 shareholders. Thetransaction is subject to regulatory approval and other customary CSErequirements.
About the Dale Property
The Company has an option to acquire a 100% interest inthe Dale Property. The Dale Property was originally staked on June1, 2012 after the Algoma-Talisman's appeal failed in December 2010,reverting several townships back to the Crown. Due to the history ofthe land tenure, Dale Township was privately held and unavailable forconventional staking and prospecting.
The area was staked due to its structural and regionalrelationships with other gold occurrences and an anomalous gold intill, down ice glacial outwash leading back to the Dale Stock. Otheranomalous gold in glacial till outwash lead back to historic goldmines supporting the potential of undiscovered gold potential in theDale Stock.. Placer Dome Canada Limited (PDCL) completed the mostextensive exploration program in Dale Township to date, which includedan airborne magnetic-electromagnetic (EM) survey, followed with aground campaign. Preliminary exploration by the Company has returnedprospecting samples up to 2.6 g/t gold from newly exposed trenches(see new release June 3, 2022).
Figure 1.Simplified Regional Geology ofthe Dale Project Area, showing nearby significant deposits andproducing mines.
The Dale Property is a highly prospective early-stagegold project located in the Swazye Greenstone Belt, which is turn ispart of the Abitibi Subprovince which hosts some of the world'slargest gold deposits, e.g. the Timmins camp which has produced over70 million ounces of gold (Figure 1). The Swazye Greenstone Belt isbest known for hosting IamGold's Côté Lake deposit which contains10.2 million ounces Measured and Indicated and 3.8 million ouncesInferred, and is located 50 km southeast of the Dale Property (Figure1). The Côté Lake project received a Positive Construction Decisionin July 2020 and plans to achieve commercial production in2024.
Qualified Person
The technical information in this release has beenreviewed and verified by Neil Pettigrew, M.Sc., P. Geo., Director ofElement79 Gold and a "qualified person" as defined byNational Instrument 43-101.
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 main focus is on two coreproperties: developing its previously-producing, high-grade gold andsilver mine, the Lucero project located in Arequipa, Peru, with theintent to bring it back into production in the near term; and itsflagship Maverick Springs Project located in the famous gold miningdistrict of northeastern Nevada, USA, between the Elko and White PineCounties. Maverick Springs hosts a 43-101-compliant, pit-constrainedmineral resource estimate reflecting an inferred resource of 3.71million ounces of gold equivalent "AuEq" at a grade of 0.92g/t AuEq (0.34 g/t Au and 43.4 g/t Ag) with an effective date ofOctober 19, 2022. The acquisition of the Maverick Springs Project alsoincluded a portfolio of 15 properties along the Battle Mountain trendin Nevada, which are non-core to its primary business focus. InBritish Columbia, Element79 Gold has executed a Letter of Intent andfunded a drilling program to acquire a private company that holds theoption to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in CentralBritish Columbia, approximately 20km west of Fort St. James. TheCompany also has an option to acquire a 100% interest in the DaleProperty, 90 unpatented mining claims located approximately 100 kmsouthwest of Timmins, Ontario, Canada in the Timmins Mining Division,Dale Township. The Company is analyzing the non-core Nevada projects,The Dale Property and Snowbird Property for further merit ofexploration, sale or spin-out.
For more information about the Company, please visit www.element79.gold
Contact Information
For corporatematters, please contact:
James C. Tworek, Chief Executive Officer E-mail:jt@element79gold.com
For investorrelations inquiries, please contact:
Investor Relations Department
Phone: +1.613.879.9387
E-mail: investors@element79.gold
Cautionary Note Regarding ForwardLooking 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: risksrelated to the integration of acquisitions; actual results ofexploration activities; conclusions of economic evaluations; changesin project parameters as plans continue to be refined; commodityprices; variations in ore reserves, 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 the Canadian SecuritiesExchange nor the Market Regulator (as that term is defined in thepolicies of the Canadian Securities Exchange) accepts responsibilityfor the adequacy or accuracy of this release.
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