ELMGF - Element79 Announces Returns Shares to Treasury Terminates Machacala Transaction
(TheNewswire)
Vancouver, B.C. - TheNewswire - March 6 , 2023 – Element79 Gold Corp(CSE:ELEM) (OTC:ELMGF) (FSE:7YS) ("Element79 Gold", the"Company") ispleased to announce that, in a mutual agreement with certaincontractors and related parties (“Counterparties”), it will bereturning 1,210,299 common shares to treasury.
In this Transaction, the company has Terminated itspreviously announced (June 20, 2022) acquisition of interest in theMachacala Project to mutual satisfaction with the Counterparties, aTransaction which includes both the Machacala past-producing mine andUrumalqui project. The Company feels that by relinquishing ownershipof the Machacala Project it is both a prudent financial decision andit provides greater focus on developing higher-value-generating coreprojects within its portfolio. The return to treasury of the sharesrepresents the purchase shares issued as part of the originalacquisition.
"Today's news represents significant value for ourshareholders. The cancellation of these shares improves our balancesheet and the Transaction also frees up future cash flows that wereassociated with the periodic buy-in terms due for the Machacalaproject over the coming years. This Transaction also helps sharpen ourcorporate focus on our core properties, mainly restarting theHigh-Grade Past-Producing gold-silver mine operations at Lucero andfurther developing the resource at Maverick Springs, and we feel thatthe beneficial effect of this focus will become more significant asthe company grows. We have several milestones to hit in the nearfuture and we look forward to sharing these developments as our teamachieves them." stated James Tworek, Element79 Gold CorpCEO.
The Termination of the Machacala and Urumalqui PurchaseAgreements (the “Transaction”) is a related party transactionpursuant to Multilateral Instrument 61-101 Protection of MinorityShareholders in Special Transactions (" MI 61-101 ").Antonios Maragakis, who was the CEO and a director of Calipuy prior toits purchase by Element79 Gold Corp, is also a director and the COO ofthe Company. Mr. Maragakis has disclosed his interest in theTermination to the board of directors of each of the Company andCalipuy, and has abstained from voting on Termination of theAgreement.
About Element79 Gold
Element79 Gold is a mining company focused on gold,silver and associated metals. Element79 Gold’s main focus is on twocore properties: developing its previously-producing, high-grade goldand silver mine, the Lucero project located in Arequipa, Peru, withthe intent 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 0.92 g/tAuEq (0.34 g/t Au and 43.4 g/t Ag) with an effective date of Oct. 19,2022 (see news release October 20, 2022, available on SEDAR). Theacquisition of the Maverick Springs Project also included a portfolioof 15 properties along the Battle Mountain trend in Nevada, which arenon-core to its primary business focus. In British Columbia, Element79Gold has executed a Letter of Intent and funded a drilling programpursuant to acquire a private company which holds the option to 100%interest of the Snowbird High-Grade Gold Project, which consists of 10mineral claims located in Central British Columbia, approximately 20kmwest of Fort St. James. The Company also has an option to acquire 100%interest in the Dale Property, 90 unpatented mining claims locatedapproximately 100 km southwest of Timmins, Ontario, Canada in theTimmins Mining Division, Dale Township. The Company is analyzing thenon-core Nevada projects, The Dale Property and Snowbird Property forfurther merit of exploration, sale or spin-out. For more informationabout the Company, please visit www.element79.gold
For corporate matters, pleasecontact:
James C. Tworek, Chief Executive Officer
Email: jt@element79gold.com
For investor relations inquiries,please contact:
Investor Relations Department
Phone: +1.613.879.9387
Email: investors@element79gold.com
The CSE has not reviewed and does not acceptresponsibility for the adequacy or accuracy of this release.
Certain information contained hereinmay constitute “forward-looking information” under Canadiansecurities legislation. Generally, forward-looking information can beidentified by the use of forward-looking terminology such as“expects”, “anticipates”, “will be”, “intends” orvariations of such words and phrases or statements that certainactions, events, or results “will” occur. Forward-lookingstatements regarding the Company and its business and strategies arebased on the Company’s estimates and are subject to known andunknown risks, uncertainties and other factors that may cause theactual results, level of activity, performance or achievements of theCompany and its subsidiaries to be materially different from thoseexpressed or implied by such forward-looking statements orforward-looking information, including capital expenditures and othercosts. There can be no assurance that such statements will prove to beaccurate, as actual results and future events could differ materiallyfrom those anticipated in such statements. Accordingly, readers shouldnot place undue reliance on forward-looking statements andforward-looking information. The Company will not update anyforward-looking statements or forward-looking information that areincorporated by reference herein, except as required by applicablesecurities laws
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