ELMGF - Element79 Gold Corp Completes Rework of Final Payment Structure for Acquisition of Nevada Portfolio
(TheNewswire)
Vancouver, British Columbia – TheNewswire - March 28, 2023 – Element79 Gold Corp(CSE:ELEM) (OTC:ELMGF) (FSE:7YS) (“Element79 Gold”, the“Company” ) is pleased to announce it hassuccessfully reworked the final payment structure due for theportfolio of Nevada assets that were purchased and announced on December 23, 2021.
Original transaction terms
Per the terms outlined in the Company’s news releaseof December 23, 2021, the Company paid $2,000,289.97 in cash paymentsand issued a total of 5,095,733 common shares on December 23. 2021.The Company further made a payment of $150,000 in 2022 to complete the“initial payment” and accounted for the final payment of CAD$2,000,000 via a Contingent Value Rights agreement (“CVRAgreement”) with Waterton Nevada Splitter, LLC (“Waterton”),with the final payment due on December 23, 2022.
Updated final settlement terms
As an update to the CVR Agreement, the Company hasworked with Waterton to create an alternate structure. As part of theterms of the updated payment agreement, the final $2,000,000 milestonepayment due will be converted into a two-year, zero-coupon debtfacility with convertibility options priced at $0.15 and a 10% defaultinterest rate. Prepayment by the Company is possible with a 60-dayadvance notice and paid at a 10% premium to the principal amountremaining.
James Tworek, Element79 Gold’s CEO recounts: “Latelast year, given the global economic conditions and overlaying marketconditions for raising capital to complete this milestone payment, weproactively reached out to Waterton starting at the end of Summer todiscuss alternate options. We found the discussions and negotiationprocesses fruitful, with Waterton being understanding the currentinvestment climate. We feel that this solution is mutuallybeneficial and gives a strong vote of confidence in the Company’sshare price growth potential given the conversion pricing and two-yeartimeline to maturity. We can close this chapter for the time beingand can now focus energies on Element79’s core projects, generatingrevenue, and divesting of its non-core assets.
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 program toacquire a private company which holds the option to 100% interest ofthe Snowbird High-Grade Gold Project, which consists of 10 mineralclaims located in Central British Columbia, approximately 20km west ofFort St. James. The Company also has an option to acquire a 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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