ELMGF - Element79 Gold Corp. Comments on Peruvian Government Reform Centralizing Oversight of Small-Scale Mining Under Ministry of Energy and Mines
(TheNewswire)
Vancouver, British Columbia – TheNewswire - May 22, 2025 –Element79 Gold Corp. (the “Company” or “Element79”) (CSE:ELEM, OTC: ELMGF, FSE: 7YS0) wishes to comment on recent developmentsaffecting the mining sector in Peru, where the Company’s flagshipLucero Project is located.
Highlights:
The Peruvian government has enactedSupreme Decree No. 009-2025-EM , transferring oversight of small-scale and artisanal miningfrom regional governments to the Ministry of Energy and Mines (MINEM) .
The deadline for the mandated Formalization of REINFO(Comprehensive Mining Formalization Registry) permit holders withmineral right holders has been extended until December 31, 2025 , giving operators more time toformalize.
MINEM’s Directorate General of MiningFormalization will nowhandle all administrative, monitoring, and enforcement processesrelated to mining formalization.
Reform is grounded in Law No.32213 , published inDecember 2024.
A new national traceability platform (SIPMMA) is being launched to improve transparency andmonitoring of registered small-scale miningoperations.
The reform has raised concerns among regionalgovernments over loss oflocal oversight and potential impacts on decentralizedgovernance.
Element79 Gold Corp supports centralizedoversight if implementedwith community engagement and regional collaboration.
The Lucero Project remains a corefocus , with continuedefforts to formalize local artisanal miners and advance explorationtoward production.
The Company reaffirms its commitment tosocial investment and long-term communityrelationships in Chachasand surrounding areas.
Following success in Nevada asset development andsales , Element79 GoldCorp. will reignitestrategic initiatives inthat jurisdiction.
In May 2025, the Government of Peru enacted SupremeDecree No. 009-2025-EM, which extends the validity of theComprehensive Mining Formalization Registry (REINFO) until December31, 2025, and shifts responsibility for supervising small-scale andartisanal mining from regional governments to the Ministry of Energyand Mines (MINEM).
Under this reform, the Directorate General of MiningFormalization within MINEM will assume exclusive responsibility forthe administrative processing, monitoring, and enforcement offormalization-related matters. The changes are grounded in Law No.32213, published in December 2024, and are designed to enable a morecentralized, technical, and transparent regulatory process.
This centralization will be further supported by theimplementation of a new national traceability platform, the SistemaInteroperable de la Pequeña Minería y Minería Artesanal (SIPMMA),which aims to improve oversight and data integration across registeredmining activities.
While the reform has raised concerns among regionalgovernments regarding reduced local oversight and the implications fordecentralized governance, Element79 believes the changes mayultimately contribute to improved regulatory clarity and operationalefficiencies across the sector.
“We are closely monitoring this policy shift and itsimplementation,” commented James Tworek, CEO and Director ofElement79 Gold Corp. “Given Lucero’s location and strategic focuswithin the artisanal and small-scale mining segment, we view enhancedregulatory structure and centralized oversight as potentiallybeneficial, provided that community engagement and regionalcollaboration remain part of the process.”
The Company further notes that the extension of theREINFO deadline through December 2025 allows additional time forregional operators and stakeholders to advance their formalizationefforts, which may support ongoing engagement strategies withartisanal miners operating within and around the LuceroProject.
Element79 Gold Corp believes in the long-term potentialof the Lucero Project, continues to maintain the project’s mineralleases, and is proud of the community-based investments, socialdevelopment efforts, and relationships it has built since acquiringLucero at the end of June 2022. The Company will continue its effortsin forging contracts with the local community for both theformalization of local artisanal miners as well as the Company’s ownexploration and development of Lucero into a producing mine.
Corporate Strategy Refocus
In addition to ongoing efforts and campaigns to work inChachas, the Company’s management and board identifies that following notable successes in developing andmonetizing assets in Nevada, it will be carrying out a renewedstrategic focus in the region. This strategic shift will includedealing and development of its current portfolio of Nevada projects,growth of the management team with regionally-specific explorationexperience, as well as is reviewing additional M&A opportunitiesin the region.
For more information about the Company and itsprojects, please visit: www.element79.gold
ON BEHALF OF THE BOARD OFDIRECTORS
James C. Tworek
Chief Executive Officer, Director
Element79 Gold Corp.
Investor Relations Contact:
T: +1.403.850.8050
About Element79 Gold Corp.
Element79 Gold Corp. is a mining company focused on theexploration and development of high-grade gold and silver projects inthe Americas. The Company’s flagship asset, the Lucero Project, is apast-producing high-grade gold-silver mine located in Arequipa, Peru.The Company is actively advancing Lucero toward renewed production andtailings reprocessing while supporting formalization initiatives withlocal operators.
The Company also holds several exploration projectsalong Nevada’s Battle Mountain trend, a region renowned for prolificgold production, and these assets are under contract for sale in thefirst half of 2025. Additionally, Element79 has transferred its DaleProperty in Ontario to its subsidiary, Synergy Metals Corp., as partof a Plan of Arrangement spin-out process.
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