Element79 Shares Further Advances With Chachas Community, Provides Corporate Update
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Element79 Gold Corp Shares Further Advances With Chachas Community
on Lucero Surface Rights, Provides Corporate Update
VANCOUVER, BC / THENEWSWIRE / October 24, 2024 – *Element79 Gold Corp.* (CSE:
ELEM) (OTC: ELMGF) (FSE: 7YS0) ("Element79" or the "Company") is pleased to announce
additional progress towards obtaining approval of its surface rights contract at the Lucero
project in Peru, through ongoing community engagement and recent approval at the
Chachas General Assembly.
Since acquiring the Lucero mineral rights in mid-2022, Element79 Gold has actively engaged
with the Chachas community to secure support critical for project success. On October 6,
2024, after more than 18 months of outreach and collaboration, the Company received over
75% approval from the community for its operational initiatives. This approval paves the way
for the negotiation of a 5-year revolving surface rights access agreement.
The formal request for surface rights was received and officially recognized by the Chachas
administration on October 18, 2024, with contract negotiations expected to be finalized by
the end of the year. Several other mining projects in the region are undergoing similar
approvals, and the Chachas administration is anticipated to ap prove multiple projects in
parallel by year-end. The GAE Consultores team that has been successful in achieving these
recent milestones is back in the community starting this week, to continue the drive towards
negotiating and forging the required agreements between the Chachas community, the
artisanal mining association Lomas Doradas and Element79 Gold Corp.
Element79 CEO and Director James Tworek stated “While we are seeing snow start in
Nevada for the year, and being in the final queue towards completing our surface rights
contracts with Chachas and Lomas Doradas, we turn our attention to advancing the most
tangible near-term resource development and revenue generation project in our portfolio,
the Lucero Tailings , to work on through the winter . We believe the d ata gathering for this
project will be fastest and easiest to achieve given the four piles of tail ings are easily
accessible for auguring . W hile the lab tests, metallurgy and testing of innovative
technologies to process the tailings are underway, the planning of work flow on the project
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from building the plant to processing and retiring the tailings in their final resting places will
carry on through the winter, along with processes to permit the construction of the plant.
We are excited to get started on this high -value initiative, and will be reporting through its
multiple processes unfolding over time.”
Lucero Tailings Project overview
As a first step upon completion of the contracts with Chachas and Lomas Doradas, the
Company intends to focus its energies on the Lucero Tailings project, which holds
approximately 1.3 million metric tons (MMT) of flotation -treated, dry -stacked tailings
estimated to yield around 50,000 ounces of gold equivalent, the Company is undertaking a
43-101 compliant Mineral Resource Estimate and a Pre-Economic Assessment (PEA) on the
tailings. Th ese studies will assess the Tailings project’s value today, economic vi ability,
process flow, and capacity for up to 2.5MMT of tailings to account for both current and future
material.
Element79 is also focused on securing permits from the state of Arequipa for the
construction of an on-site processing plant. The Company has already been in contact with
the proper departments of the State of Arequipa regarding permitting approval and will
formally start the estimated 4–6-month process to obtain this permit upon completion of
the agreements with Chachas. This timeline dovetails with the rai ny season that prevents
access to the Lucero mine from December to April given its current level of infrastructure.
Once approvals are in place, plant construction is estimated to take approximately 90 days.
The plant will not only process tailings materials but can also expand to include raw ore
milling and flotation, improving efficiency and reducing multiple costs for both Element79
and local artisanal miners.
Recent Corporate Updates
Pursuant to its press release of October 7, 2024, the Company has issued 7,862,421
common shares to certain of its creditors (the "Settlement Shares") in exchange for
outstanding accounts payable (the "Shares for Debt Transaction") in the aggregate amount
of CA$1,022,115 (the "Debt") owing to certain creditors (the "Creditors"), primarily
management, board of directors and principal consultants of the Company for backdat ed
pay. The Settlement Shares are being issued at a price of $0.13, in accordance with the
policies of the Canadian Securities Exchange (the "CSE").
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As previously announced the Company is completing the Shares for Debt Transaction to
improve its financial position by reducing its existing liabilities. All Settlement Shares will be
subject to a four -month and one -day hold period. No new control person o f the Company
will be created pursuant to the Shares for Debt Transaction. The Shares for Debt Transaction
constitutes a "related party transaction" within the meaning of Multilateral Instrument 61 -
101 - Protection of Minority Security Holders in Special T ransactions ("MI 61101") as Stack
Asset Management Ltd., a company controlled by James Tworek (CEO and Director of the
Corporation); Neil Pettigrew, (Director of the Corporation); Frontier Advisory (a corporation
controlled by Warren Levy, Director of the Corporation); Zara Kanji, (Director of the
Corporation); Tammy Gillis (CFO of the Corporation); Monita Faris, (Corporate Secretary of
the Corporation); and Dry Gulch Investments LLC (a corporation controlled by Kim Kirkland,
Chief Operating Officer of the Corporation), have all been issued Settlement Shares in
connection with the debt settlement. The Company is relying on the exemptions from the
valuation and minority shareholder approval requirements of MI 61 -101 contained in
sections 5.5(a) and 5.7(1)(a) of MI 61 -101, as the f air market value of the shares for debt
transaction with the forgoing insiders does not exceed 25% of the market capitalization of
the Company, as determined in accordance with MI 61 -101. The Company did not file a
material change report in respect of the related party transaction at least 21 days before the
closing of the debt settlement, which the Company deems reasonable in the circumstances
as the Company wishes to improve its financial position by reducing its existing liabilities.
The Company did not file a material change report more than 21 days before the expected
closing of the Shares for Debt Transaction, which it considers reasonable in the
circumstances, as the participation in the transaction by a related party of the Company was
not definitive until shortly prior to the closing of the Shares for Debt Transaction and the
Company was attempting to close the transaction expeditiously.
About Element79 Gold Corp.
Element79 Gold is a mining company focused on gold and silver, committed to maximizing
shareholder value through responsible mining practices 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
production in 2025.
The Company also holds a portfolio of 5 properties along the Battle Mountain trend in
Nevada, with the Clover and West Whistler projects believed to have significant potential for
near-term resource development. Three properties in the Battle Mountain Port folio are
under contract for sale to Valdo Minerals Ltd., with an anticipated closing date in the first
half of 2024.
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The Company has an option 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 subsidiar y,
Synergy Metals Corp, and is advancing through the Plan of Arrangement spin-out process.
For more information about the Company, please visit www.element79.gold
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 prospec ts 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
Company's business strategy; future planning processes; exploration activities; the timing and result of
exploration activities; capital projects and exploration activities and the possible results thereof; acquisition
opportunities; and the impact of acquisitions, if any, on the Company. 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.