Element79 Provides Corporate Update
Element79 Provides Corporate Update
VANCOUVER, BC / THENEWSWIRE / May 7, 2025 – Element79 Gold Corp. (CSE: ELEM) (OTC:
ELMGF) (FSE: 7YS) ("Element79", or the "Company”) provides the following updates on multiple
corporate initiatives underway:
Update on Sale of Nevada Assets to 1472886 BC Ltd.
As first outlined in the Company’s news release on September 9, 2024, and updated on October 10, 2024,
the Company has made multiple attempts to push this transaction towards completion, with the counterparty
being unable to meet terms required to complete a successful closing. As the original timelines of the LOI
have expired, the Company holds that the contract with 1472886 BC Ltd. is null and void and has restarted
conversations with alternate parties that have expressed interest in the purchase of the Stargo, Elder Creek
and North Mill Creek projects.
Update on Financing: Crescita Capital Note Draw
In the month of April 2025, Crescita issued CAD $100,000 of capital to the Company, for use in advancing
community efforts for the Lucero project , investor relations activities and general corporate purposes .
Similar to the first draw from the new 2025 Crescita Draw Down Facility as announced on February 28,
2025, the convertible note drawn will carry a simple interest rate of 15% per annum until repaid or converted
into shares of the Company.
The general use of funds for any financing efforts that the company engages in in the immediate term ,
including the strategic sale of corporate assets, will be sequentially to pay mineral leases for its projects in
Peru and Nevada; complete its OTCQB uplistin g; general corporate operating expenses and address key
accounts payable.
Update on Chachas community progress, strategic review of Lucero
Representatives of Element79 Gold Corp and its community relations team, GAE Peru, attended a series
of meetings in both Chachas, Arequipa and Lima between the April 21st and May 3rd, yielding the following
report on continued progress towards forging long- term surface rights access and therefore access to its
past-producing Lucero mine for exploration and mineral exploitation activities. A summary of GAE’s report
for April 2024 is provided below.
Ongoing Challenges with Informal Mining (REINFO)
The report highlights the presence of 102 active informal miners registered under the REINFO framework
are operating in the general Chachas region, with an estimated 350 more operating around Chachas
without formal status. Many of these actors are reported to have been extracting ore illegally for around, if
not over, a decade. While the federal REINFO was established as a route to Formalization, it has often
been used in practice to legitimize illegal mining operations. The main local artisanal mining association,
Asociación Lomas Dorada s, comprising 65 such miners, has shown limited interest in engaging with
Element79 Gold Corp, although a small group within their Tonalita concession may pursue Formalization.
In addition to the above, there is a separate contingent of REINFO miners willing to enter into an exploitation
agreement with Element79 Gold Corp. Discussions are ongoing, with a key meeting roughly scheduled
during the first half of May 2025. The situation remains complex, as community members and REINFOs
have taken measures such as blocking access routes with guarded checkpoints and reportedly seek to
establish their own mineral processing plant on communal land.
Strengthening Community Relations
Since September 2024, GAE Peru has actively engaged with residents across six annexes of Chachas
through meetings and two large- scale general assemblies. For its consistent presence and attendance at
community meetings, Element79 Gold is increasingly recognized in the region, maintaining open lines of
communication via its local Social Management Office. Support from the current communal leadership,
particularly President Melitón, has been instrumental in fostering constr uctive dialogue. A critical
extraneous assembly to discuss long-term agreements is scheduled for July 2025.
Focus on Value Creation and Negotiation
The Company remains committed to a comprehensive value- generation plan that includes exploration,
exploitation, and operation of a mineral processing facility. Local communities have expressed high
expectations for future economic benefits, particularly in the form of irrigation and agricultural development
support, as outlined by the Chachas Irrigation Commission and local farmers from Chachas and Nahuira.
Path Forward Through Dialogue
During the most recent communal assembly in April and subsequent smaller assembly and group meetings,
stakeholders within the Chachas region have continued dialogue with Element79 Gold Corp, bypassing the
uncooperative leadership of the Lomas Doradas Association. A formal dialogue session with the communal
board (JJDD) and local administrative leaders (JAL) is scheduled for May 15, 2025.
Government Oversight and Legal Pathways
The GREM (Regional Mining Office) of Arequipa has acknowledged the limited timeframe for formalizing
current REINFO miners in Chachas. Beginning in June 2025, GAE Peru, on behalf of Element79 Gold Corp,
will request GREM's oversight to enforce legal regulations under the new Small-Scale and Artisanal Mining
Law (MAPE), enabling coordinated action against ongoing illegal mining.
Commitment to Responsible Development
Element79 Gold reaffirms its commitment to responsible mining and community development, emphasizing
the importance of dialogue and mutual respect as it advances the Lucero Project toward future production.
James Tworek, Element79 Gold Corp CEO and Director stated: “ The potential of Lucero remains a key
motivation and driving force behind the Company’s decision making, and we remain cautiously optimistic
that the upcoming June 30 deadline for Formalization between REINFOs and mineral right holders will
continue to bring us closer to the goal of forging long term contracts with the local miners and greater
Chachas community. While we progress in community relations month by month, we’re living the reality
that relationship building and trust creation are exercises in communication, persistence, patience and
mutual understanding.
In the interim, recent team due diligence trips to review additional assets in Peru and Nevada, along with
strategy sessions with advisors and key investors in the Company have opened our eyes to a number of
possible alternate growth strategies . We look forward to reporting on these initiatives in the coming
months.”
For further details on this announcement and the Company’s projects, please visit www.element79.gold
About Element79 Gold Corp.
Element79 Gold Corp. is a mining company focused on exploring and developing its past-producing, high-
grade gold and silver project, Lucero, located in Chachas, Arequipa, Peru. The Company is committed to
advancing responsible mining practices and maintaining strong relationships with local communities to
support sustainable development.
The Company also holds several exploration projects along Nevada’s Battle Mountain trend, a region
renowned for prolific gold production, and these assets are under contract for sale in the first half of 2025.
Additionally, Element79 has transferred its Dale Property in Ontario to its subsidiary, Synergy Metals Corp.,
as part of a Plan of Arrangement spin-out process.
Contact Information
For corporate matters, please contact:
James C. Tworek, Chief Executive Officer
E-mail: [email protected]
For investor relations inquiries, please contact:
Investor Relations Department
Phone: +1.403.850.8050
E-mail: [email protected]
Cautionary Note Regarding Forward Looking Statements
This press contains "forward‐ looking information" and "forward- looking statements" under applicable
securities laws (collectively, "forward‐looking statements"). These statements relate to future events or the
Company's future performance, business prospects or opportunities that are based on forecasts of future
results, estimates of amounts not yet determinable and assumptions of management made considering
management's experience and perception of historical trends, current conditions and expected future
developments. Forward-looking statements include, but are not limited to, statements with respect to: the
timing and completion of the arrangement and the timing and completion of the amalgamation. Assumptions
may prove to be incorrect and actual results may differ materially from those anticipated. Consequently,
forward-looking statements cannot be guaranteed. As such, investors are cautioned not to place undue
reliance upon forward- looking statements as there can be no assurance that the plans, assumptions or
expectations 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
predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but
not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect",
"may", "will", "project", "predict", "forecast", "potential", "target", "intend", "could", "might", "should", "believe"
and similar expressions) are not statements of historical fact and may be "forward ‐looking statements".
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.