Element79 News Release 02/06/2023
Element79 Announces Returns Shares to Treasury, Terminates Machacala Transaction
Vancouver, B.C. March 6 , 2023 – Element79 Gold Corp (CSE:ELEM) (OTC:ELMGF) (FSE:7YS)
("Element79 Gold", the "Company") is pleased to announce that, in a mutual agreement with
certain contractors and related parties (“Counterparties”), it will be returning 1,210,299 common
shares to treasury.
In this Transaction, the company has Terminated its previously announced (June 20, 2022)
acquisition of interest in the Machacala P roject to mutual satis faction with the Counterparties , a
Transaction which includes both the Machacala past -producing mine and Urumalqui project . The
Company feels that by relinquishing ownership of the Machacala Project it is both a prudent financial
decision and it provides greater focus on developing higher-value-generating core projects within its
portfolio. The return to treasury of the shares represents the purchase shares issued as part of the
original acquisition.
"Today's news represents significant value for our shareholders. The cancellation of these shares
improves our balance sheet and the Transaction also frees up future cash flows that were associated
with the periodic buy-in terms due for the Machacala project over the coming years. This Transaction
also helps sharpen our corporate focus on our core properties, mainly restarting the High-Grade
Past-Producing gold-silver mine operations at Lucero and further developing the resource at
Maverick Springs, and we feel that the beneficial effect of this focus will become more significant as
the company grows . We have several milestones to hit in the near future and we look forward to
sharing these developments as our team achieves them ." stated James Tworek, Element79 Gold
Corp CEO.
The Termination of the Machacala and Urumalqui Purchase Agreements (the “Transaction”) is a
related party transaction pursuant to Multilateral Instrument 61 -101 Protection of Minority
Shareholders in Special Transactions ("MI 61-101"). Antonios Maragakis, who was the CEO and a
director of Calipuy prior to its purchase by Element79 Gold Corp, is also a director and the COO of
the Company. Mr. Maragakis has disclosed his interest in the T ermination to the board of directors
of each of the Company and Calipuy, and has abstained from voting on T ermination of the
Agreement.
About Element79 Gold
Element79 Gold is a mining company focused on gold, silver and associated metals. Element79
Gold’s main focus is on two core properties: developing its previously -producing, high-grade gold
and silver mine, the Lucero project located in Arequipa, Peru, with the intent to bring it back into
production in the near term; and its flagship Maverick Springs Project located in the famous gold
mining district of northeastern Nevada, USA, between the Elko and White Pine Counties. Maverick
Springs hosts a 43 -101-compliant, pit-constrained mineral resource estimate reflecting an inferred
resource of 3.71 million ounces of gold equivalent “AuEq” at a grade of 0.92 g/t AuEq (0.34 g/t Au
2 of 7
and 43.4 g/t Ag) with an effective date of Oct. 19, 2022 (see news release October 20, 2022, available
on SEDAR). The acquisition of the Maverick Springs Project also included a portfolio of 15 properties
along the Battle Mountain trend in Nevada, which are non-core to its primary business focus. In British
Columbia, Element79 Gold has executed a Letter of Intent and funded a drilling program pursuant to
acquire a private company which holds the option to 100% interest of the Snowbird High-Grade Gold
Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km
west of Fort St. James. The Company also has an option to acquire 100% interest in the Dale
Property, 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario,
Canada in the Timmins Mining Division, Dale Township. The Company is analyzing the non -core
Nevada projects, The Dale Property and Snowbird Property for further merit of exploration, sale or
spin-out. For more information about the Company, please visit www.element79.gold
For corporate matters, please contact:
James C. Tworek, Chief Executive Officer
Email: [email protected]
For investor relations inquiries, please contact:
Investor Relations Department
Phone: +1.613.879.9387
Email: [email protected]
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this
release.
Certain information contained herein may constitute “forward-looking information” under Canadian
securities legislation. Generally, forward-looking information can be identified by the use of forward-
looking terminology such as “expects”, “anticipates”, “will be”, “intends” or variations of such words
and phrases or statements that certain actions, events, or results “will” occur. Forward -looking
statements regarding the Company and its business and strategies are based on the Company’s
estimates and are subject to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of act ivity, performance or achievements of the Company and its
subsidiaries to be materially different from those expressed or implied by such forward -looking
statements or forward-looking information, including capital expenditures and other costs. There can
be no assurance that such statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements and forward-looking information. The Company
will not update any forward- looking statements or forward -looking information that are
incorporated by reference herein, except as required by applicable securities laws