ELMGF - Element79 Gold Corp. Confirms Oversubscribed Final Tranche Of Equity Unit Offering Raising Over $867000
(TheNewswire)
Vancouver, BC – April 18, 2024 –Element79 Gold Corp. (CSE:ELEM)(OTC:ELMGF)(FSE:7YS0)("Element79" or "the Company") The Company is pleased to announce that it has closed its finalround of capital raising efforts, announcing that that the previously initiated non-brokeredPrivate Placement of Equity Units was metwith overwhelming investor interest, resulting in anoversubscription.
While the Company had originally setout to raise CAD $400,000 , it had garneredcapitalization commitments surpassing the initial offering, with theUnit offering having gone through two tranches, first on March 14 and extended the offering to $600,000 after the second on March 28th, and now with athird closing the offering has raised an aggregate total of CAD$867,735.
The Third tranche of the placement raised a total of$317,660 and will see the Company issue a total of 1,381,130 Units.Each Unit comprised of one common share of theCompany (a “Common Share”) and one common share purchase warrant(each a “Warrant”). Each Warrant will be exercisable for oneCommon Share at a price of $0.35 per Common Share for two (2) yearsfrom the date of issuance. All securities issued for the placementwill be subject to a four month and one day hold from the date ofissue.
The warrants are subject to an acceleration clausewhereby should the shares of the Company trade at or above $0.40 pershare on the North American stock exchange on which it is then listedfor ten consecutive trading days (after the date that is four monthsand one day from the closing of the Offering) the warrants may beaccelerated. There were no finders fees payable for the Second trancheof the placement,
The Company further notes that pursuant to its press release of April 8,2024 , it has settled a cash payment due toCondor Resources Inc. in the amount of USD $85,000 / CAD $114,865through the issuance of the same units offered to subscribers of theplacement as noted above. The settlement has the Company issuing atotal of 499,413 Units. Each Unit as defined above, having a holdperiod of Four months and a day. For more details of the payments toCondor please refer to the press release.
James C. Tworek, Chief Executive Officer and Director,commented, “Undoubtedly, our refocused corporate drive has garneredsignificant support from our investment community with this equityraising round seeing multiple up-sizings and closings. Theoversubscription of the Units underlines the trust and confidenceplaced in Element79’s vision and strategy, with this funding moreclearly bringing into sight near-term ore extraction and revenuegeneration plans."
Proceeds from the abovementioned sale of the Units willbe used for operations, including the advancement of the socialcontract formalization in Peru to allow the long-term extension of thesocial license and ongoing Lucero project development plan to unfold. In addition, Certain Investor Relations initiatives will be engagedor extended in conjunction with this Financing with a portion withheldfor general working capital.
About Element79 Gold Corp
About Element79 Gold Corp Element79 Gold Corp is a goldand silver mining company committed to maximizing shareholder valuethrough responsible mining practices and sustainable development ofits projects. Element79 Gold's core focus is on developing itspast-producing, high-grade gold and silver mine, the Lucero projectlocated in Arequipa, Peru, with the intent to restart production in2024.
The Company also holds a portfolio of 5 propertiesalong the Battle Mountain trend in Nevada, with the Clover and WestWhistler projects believed to have significant potential for near-termresource development. Three properties in the Battle MountainPortfolio are under contract for sale to Valdo Minerals Ltd., with ananticipated closing date in the first half of 2024. The Company hasalso signed an Option Agreement to sell the Maverick Springs project,an advanced-stage exploratory property with an Inferred Resource of3.71MMoz AuEq (1.37MMoz Au and 175MMoz Ag) (see 43-101 technicalreport titled: Amended Technical Report on the Maverick SpringsProject, Nevada, USA, by Allan Armitage, PhD., P.Geo, and RohanMillar, B.Sc. P.Geo., dated October 7, 2022, available on SEDAR) andanticipates completing this sale on or before July 21, 2024.
In British Columbia, Element79 Gold has executed aLetter of Intent and funded a drilling program to acquire a privatecompany that holds the option to 100% interest of the SnowbirdHigh-Grade Gold Project, which consists of 10 mineral claims locatedin Central British Columbia, approximately 20km west of Fort St.James. The Company has an option to acquire a 100% interest in theDale Property, 90 unpatented mining claims located approximately 100km southwest of Timmins, Ontario, and has recently announced that ithas transferred this project to its wholly-owned subsidiary, SynergyMetals Corp, and is advancing through the Plan of Arrangement spin-outprocess. For more information about the company please visit ourofficial website at www.element79.gold
Contact Information
For corporate matters, pleasecontact:
James C. Tworek
Chief Executive Officer and Director
E-mail: jt@element79.gold
For investor relations inquiries,please contact:
Investor Relations Department
Phone: +1.403.850.8050
E-mail: investors@element79.gold
Cautionary Note Regarding Forward Looking StatementsThis press release contains "forward?looking information"and "forward-looking statements" under applicable securitieslaws (collectively, "forward?looking statements"). Thesestatements relate to future events or the Company's futureperformance, business prospects or opportunities that are based onforecasts of future results, estimates of amounts not yet determinableand assumptions of management made in light of management's experienceand perception of historical trends, current conditions and expectedfuture developments. Forward-looking statements include, but are notlimited to, statements with respect to: the Company's businessstrategy; future planning processes; exploration activities; thetiming and result of exploration activities; capital projects andexploration activities and the possible results thereof; acquisitionopportunities; and the impact of acquisitions, if any, on the Company.Assumptions may prove to be incorrect and actualresults may differ materially from those anticipated. Consequently,forward-looking statements cannot be guaranteed. As such, investorsare cautioned not to place undue reliance upon forward-lookingstatements as there can be no assurance that the plans, assumptions orexpectations upon which they are placed will occur. 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.
Contact Information For corporate matters, pleasecontact: James C. Tworek, Chief Executive Officer and Director E-mail:jt@element79.gold For investor relations inquiries, please contact:Investor Relations Department Phone: +1.403.850.8050 E-mail:investors@element79.gold Cautionary Note Regarding Forward LookingStatements This press release 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. Neither the Canadian Securities Exchange nor the MarketRegulator (as that term is defined in the policies of the CanadianSecurities Exchange) accepts responsibility for the adequacy oraccuracy of this release.
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