Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement
Strategic Transaction Empowers Company's Growth Trajectory
VANCOUVER, BC / THENEWSWIRE / May 8th, 2024 – Element79 Gold Corp. (CSE: ELEM) ( OTC: ELMGF)
(FSE: 7YS) ( "Element 79", the "Company") proudly announces the successful exercise of the Binding
Op�on Agreement (“The Acquisi�on Agreement”) with Sun Silver Limited (formerly Green Power Minerals
Pty Ltd. “Sun Silver”) for the closing of the sale of the Maverick Springs Project to Sun Silver.
Highlights
- Since Acquisi�on in 2021, the Company has worked to advance the project, including an updated
43-101 compliant inferred resource of 3.71Mozi AuEq.
- In seeking funding partners for the development of the Maverick Springs project, management
nego�ated and subsequently engaged with Sun Silver in August 2023 via a Binding Op�on
Agreement.
- As the Company is now focused on advancing the high -grade Lucero Project with near term
produc�on poten�al in Peru, this transac�on allows realizing enhanced value for Mavericks
Springs from an adjusted CAD $3.337M acquisi�on and carrying cost to a final sale value of CAD
$5.033M an increase in value of $1,696M, or 51% ROI within 28 months.
- Sale proceeds will generate a total of CAD $4,400,000 cash and 3,500,000 ordinary shares in Sun
Silver priced at AUD$0.20 (fair market value AUD $700,000.) which are expected to be listed
Australian Stock Exchange (“the ASX”) on or around May 15, 2024.
- CAD $2,200,000 of cash sale proceeds will be used to pay out the loan associated with the
Waterton Con�ngent Value Rights Agreement
- Remaining funds will fuel development of other corporate projects, opera�ons and reduce both
capital debt and accounts payable.
The Asset Sale Transac�on
The Company entered into the Acquis�on Agreement on August 31, 2023, and it was subsequently
extended and amended on January 12, 2024, and March 18, 2024. The fulfillment of all requisite
condi�ons resulted in the exercise of the op�on on May 3, 2024, by Sun Silver pursuant to the Acquisi�on
Agreement. The transac�on and associated transfer of all the Maverick Springs assets has been
successfully completed as of May 7, a�ermarket trading hours, ahead of the lis�ng of Sun Silver Limited's
ordinary shares of the ASX, expected to occur on May 15, 2024. See the Company’s press releases dated
August 31, 2023; October 23, 2023; January 17, 2024, and March 18, 2024, for further details on the
transac�on.
"The successful closing of the transac�on highlights Element 79's steadfast dedica�on to execu�ng its
strategic roadmap," said James Tworek, CEO of Element 79 Gold Corp. "This is a cri�cal milestone in the
Company’s history: it stands as proof of our team’s ability to generate value through project execu�on,
and indicates a poten�al turning poin t in our ongoing mission to build a s t r o n g e r a n d m o r e f o c u s e d
company; it reinforces diligent financial management by to clearing up the balance sheet from past
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endeavours, and it provides non-dilu�ve capital to support opera�ons and advance strategic explora�on
programs on our core proper�es to generate further value for our investors.“
Payment Terms
In accordance with the Acquisi�on Agreement, Element79 has received total cumula�ve cash
considera�on of C$4,400,000 ($265,872 of which was previously paid to the Company by Sun Silver in
respect of op�on fees under the Acquisi�on Agreement) , in addi�on to 3,500,000 fully paid ordinary
shares of Sun Silver, solidifying the Company's support for Sun Silver and in the ongoing belief in the
Maverick Springs property, reaffirming its commitment to driving sustainable growth and long-term value
crea�on for its shareholders.
As required per the terms of the Waterton Con�ngent Value Rights Agreement, announced March 23,
2023, the Company has directed $2,200,000 of the sale proceeds to paying off and closing the Waterton
loan facility including fees.
Having completed the sale of the Maverick Springs project, the Company is seeking to to intensify its
efforts toward con�nued explora�on and op�miza�on of its flagship property, Lucero (Peru), with the
inten�on to foster innova�on and sustainable development across its opera�ons.
Chachas Community Update
As outlined in the Company’s news release from April 25, 2023, the Chachas Community General Mee�ng
did take place and the Chachas Community con�nues to ra�fy its own Charter prior to comple�ng any
addi�onal contract approvals for third par�es such as Element79 Gold Corp. Through its local contacts
and its contracted community rela�ons teammates, the Company has been reaffirmed of the local support
for its projects and pending agreements for its use of and right of way on the lands. As the Company waits
for the final approval, it con�nues to review strategic regional M&A opportuni�es.
About Element79 Gold Corp.
Element79 Gold is a mining company focused on gold and silver commited to maximizing shareholder
value through responsible mining prac�ces and sustainable development of its projects. Element79 Gold's
focus is on developing its past-producing, high-grade gold and silver mine, the Lucero project located in
Arequipa, Peru, with the intent to restart produc�on in 2024.
The Company also holds a por�olio of 5 proper�es along the Batle Mountain trend in Nevada, with the
Clover and West Whistler projects believed to have significant poten�al for near -term resource
development. Three proper�es in the Batle Mountain Por� olio are under contract for sale to Valdo
Minerals Ltd., with an an�cipated closing date in the first half of 2024.
In Bri�sh Columbia, Element79 Gold has executed a Leter of Intent and funded a drilling program to
acquire a private company that holds the op�on to 100% interest of the Snowbird High-Grade Gold Project,
which consists of 10 mineral claims located in Central Bri�sh Columbia, approximately 20km west of Fort
St. James.
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The Company has an op�on to acquire a 100% interest in the Dale Property, 90 unpatented mining claims
located approximately 100 km southwest of Timmins, Ontario, and has recently announced that it has
transferred this project to its wholly owned subsidiary, Synergy Metals Corp, and is advancing through the
Plan of Arrangement spin-out process.
For more informa�on about the Company, please visit www.element79.gold
Contact Informa�on
For corporate matters, please contact:
James C. Tworek, Chief Execu�ve Officer
E-mail: [email protected]
For investor relations inquiries, please contact:
Investor Rela�ons Department
Phone: +1.403.850.8050
E-mail: [email protected]
Cau�onary Note Regarding Forward-Looking Statements
This press contains "forward-looking informa�on" and "forward -looking statements" under applicable
securi�es laws (collec�vely, "forward-looking statements"). These statements relate to future events or
the Company's future performance, business prospec ts or opportuni�es that are based on forecasts of
future results, es�mates of amounts not yet determinable and assump�ons of management made
considering management's experience and percep�on of historical trends, current condi�ons and
expected future developments. Forward-looking statements include, but are not limited to, statements
with respect to: the Company's business strategy; future planning processes; explora�on ac�vi�es; the
�ming and result of explora�on ac�vi�es; capital projects and explora�on ac�vi�es and the possible
results thereof; acquisi�on opportuni�es; and the impact of acquisi�ons, if any, on the Company.
Assump�ons may prove to be incorrect and actual results may differ materially from those an�cipated.
Consequently, forward-looking statements cannot be guaranteed. As such, investors are cau�oned not to
place undue reliance upon forward- looking statements as there can be no assurance that the plans,
assump�ons or expecta�ons upon which they are placed will occur. All statements other than statements
of historical fact may be forward-looking statements. Any statements that express or involve discussions
with respect to predic�ons, expecta�ons, beliefs, plans, projec�ons, objec�ves or future events or
performance (o�en, but not always, using words or phrases such as "seek", "an�cipate", "plan",
"con�nue", "es�mate", "expect", "may", "will", "project", "predict", "forecast", "poten�al", "target",
"intend", "could", "might", "should", "believe" and similar expre ssions) are not statements of historical
fact and may be "forward-looking statements".
Actual results may vary from forward -looking statements. Forward -looking statements are subject to
known and unknown risks, uncertain�es and other factors that may cause actual results to materially differ
from those expressed or implied by such forward -looking statements, including but not limited to: the
dura�on and effects of the coronavirus and COVID -19; risks related to the integra�on of acquisi�ons;
actual results of explora�on ac�vi�es; conclusions of economic evalua�ons; changes in project parameters
as plans c on �nue t o be r e fined; c ommodity pric es; v aria �ons in or e r es erv es, g r ade or r ec ove ry r a t es ;
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actual performance of plant, equipment or processes rela�ve to specifica�ons and expecta�ons;
accidents; labour rela�ons; rela�ons with local communi�es; changes in na�onal or local governments;
changes in applicable legisla�on or applica�on thereof; delays in obtaining approvals or financing or in the
comple�on of development or construc�on ac�vi�es; exchange rate fluctua�ons; requirements for
addi�onal capital; government regula�on; environmental risks; reclama�on expenses; outcomes of
pending li�ga�on; limita�ons on insurance coverage as well as those factors discussed in the Company's
other public disclosure documents, available on www.sedarplus.ca. Although the Company has atempted
to iden�fy important factors that could cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause results not to be as an�cipated,
es�mated or intended. The Company believes that the expecta�ons reflected in these forward-looking
statements are reasonable, but no assurance can be given that these expecta�ons will prove to be correct
and such forward-looking statements included herein should not be unduly relied upon. These statements
speak only as of the date hereof. The Company does not intend, and does not assume any obliga�on, to
update these forward-looking statements, except as required by applicable laws.
Neither the Canadian Securities Exchange nor the Market Regulator (as that term is defined in the policies
of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Inferred Resource of 3.71MMoz AuEq (1.37MMoz Au and 175MMoz Ag) (see 43-101 technical
report titled: Amended Technical Report on the Maverick Springs Project, Nevada, USA, by Allan
Armitage, PhD., P.Geo, and Rohan Millar, B.Sc. P.Geo., dated October 7, 2022, available on
SEDAR).