ELMGF - Element79 Gold Corp. Provides Corporate Guidance and Strategic Update for Remainder of 2025
(TheNewswire)
Vancouver, BC – TheNewswire – June 30, 2025 - Element79Gold Corp. (CSE: ELEM | FSE: 7YS0 | OTC: ELMGF) ("Element79" or the "Company") announces itsforward corporate guidance for the remainder of 2025, outlines recentstrategic developments regarding its Lucero Project in Peru, andreaffirms its operational focus on its advanced-stage projects inNevada, USA.
ForceMajeure Declared on Lucero Project
The Company formally invoked the force majeure clause under its agreement with Condor Resources Inc. with respect to theLucero Project due to a combination of social, regulatory, andpolitical barriers which have effectively prevented the Company fromlawfully executing planned exploration and development activities,despite holding full mineral rights.
A forcemajeure event refers to unforeseen circumstancesbeyond a party’s control—such as acts of government, socialunrest, or natural disasters—that prevent contractual obligationsfrom being fulfilled. In the case of Lucero, the following factorshave contributed to the declaration:
Evolving and inconsistent Peruvianfederal policies on small-scale miningformalization, creating uncertainty in legal enforceability andtimelines.
Political instability and leadershipvacuums , with current municipal governance inChachas in transition and the outgoing mayor largely absent from thecommunity.
Legacy community mistrust and unmetpromises from prior owners, complicating localengagement efforts.
Ongoing unauthorized artisanalmining by community members operating outsidelegal frameworks and without formalized agreements.
Element79 has spent two and a half years of extensive,evolving efforts to foster community relationships and negotiateaccess agreements in good faith, and the Company believes indeveloping a win-win solution with the Chachas community for therestart of the past-producing Lucero mine, the tailings anddevelopment of a regional processing plant, and exploring thegeological assets inside the Lucero concessions. The Company and itscontracted financial consultants remain staunchly optimistic to fundfuture development at Lucero as agreements for surface rightsagreements are reached. In the short-term, internal reports andformal feedback from its social engagement team (GAE Peru) andregional mining authorities (DREM Arequipa) suggest that no materialprogress toward surface rights agreements is likely for the remainderof 2025.
PathToward Resolution and Reworking Terms with Condor Resources
Over the next 12 months, Element79 will:
Continue monitoring regulatory developments,particularly the anticipated implementation of MAPE legislation ,which may clarify formalization mechanisms between artisanal minersand mineral right holders.
Maintain social outreach campaigns in Chachas throughthe Company’s social engagement team, GAE Peru, preparing thegroundwork for ongoingengagement pre- and post-municipal elections in early 2026
Continue ongoing dialogue with Condor Resources toexplore restructuring the terms of the original Lucero agreement, withthe goal of establishing amore reasonable, flexible and mutually beneficialframework as on-the-ground conditions allow formeaningful work to resume at Lucero.
Strategic Focus Shift to Nevada Projects
In line with this operational pivot, Element79 isreaffirming its near-term focus on its U.S.-based assets:
The Company will retain and advance development at the ElephantProject in Nevada. A technical report toformally organize historical work under the 43-101 framework, upcomingwork plan and exploration campaign are currently being finalized andwill be publicly disclosed shortly.
The acquisitionof the Gold Mountain Project , a drill-readyasset also located in Nevada, is expected to close as soon as possible, pendingadministrative timelines surrounding Canada Day and U.S. IndependenceDay holidays. A comprehensive development plan will be issuedthereafter.
As Element79 aligns its capital and human resources tonear-term executable projects, the Company remains committedto:
Unlocking shareholder value through strategic assetoptimization.
De-risking its project portfolio by prioritizingjurisdictions with clear permitting paths.
Continuing stakeholder engagement to support long-termsuccess at Lucero when conditions become viable.
Changes to the board of directors and management toreflect the evolving business model
About Element79 Gold Corp.
Element79 Gold Corp. is a mining company focused onthe exploration and development of high-grade gold and silver assets.Its principal asset is the past-producing Lucero Project in Arequipa,Peru, where it aims to resume operations through both conventionalmining and tailings reprocessing. In the United States, the Companyholds interests in multiple projects along Nevada's Battle MountainTrend. Additionally, Element79 Gold has completed the transfer of its Dale Property in Ontario to its wholly ownedsubsidiary, Synergy Metals Corp., and is progressing through the Planof Arrangement spin-out process.
For further information, please visit: www.element79.gold
On Behalf of the Board ofDirectors
James C. Tworek
Chief Executive Officer, Director
Element79 Gold Corp.
Cautionary Note Regarding ForwardLooking Statements
This press release containsforward-looking statements within the meaning of applicable securitieslaws. The use of any of the words "anticipate,""plan," "continue," "expect,""estimate," "objective,""may," "will," "project," "should,""predict," "potential" and similar expressions areintended to identify forward-looking statements. In particular, thispress release contains forward-looking statements concerning theCompany’s exploration plans, development plans and the Force MajeureEvent. Although the Company believes that the expectations andassumptions on which the forward-looking statements are based arereasonable, undue reliance should not be placed on these statementsbecause the Company cannot provide assurance that they will provecorrect. Forward-looking statements involve inherent risks anduncertainties, and actual results may differ materially from thoseanticipated. Factors that could cause actual results to differ includeconditions in the duration of the Force Majeure Event, and receipt ofregulatory and shareholder approvals. These forward-looking statementsare made as of the date of this press release, and, except as requiredby law, the Company disclaims any intent or obligation to updatepublicly any forward-looking statements.
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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