Element79 Gold Closes Oversubscribed Offering, Turns Focus to Near Term Cashflow

Element79 Gold Corp. (CSE:ELEM)(OTC:ELMGF)(FSE:7YS0) Is pleased to announce that it has closed its final round of capital raising efforts, announcing that the previously initiated non-brokered Private Placement of Equity Units was met with overwhelming investor interest, resulting in an oversubscription.

While the Company had originally set out to raise CAD $400,000, it had garnered capitalization commitments surpassing the initial offering, with the Unit offering having gone through two tranches, first on March 14 and extended the offering to $600,000 after the second on March 28th, and now with a third closing the offering has raised an aggregate total of CAD $867,735.

The Third tranche of the placement raised a total of $317,660 and will see the Company issue a total of 1,381,130 Units. Each Unit comprised of one common share of the Company (a “Common Share”) and one common share purchase warrant (each a “Warrant”). Each Warrant will be exercisable for one Common Share at a price of $0.35 per Common Share for two (2) years from the date of issuance.  All securities issued for the placement will be subject to a four month and one day hold from the date of issue.

The warrants are subject to an acceleration clause whereby should the shares of the Company trade at or above $0.40 per share on the North American stock exchange on which it is then listed for ten consecutive trading days (after the date that is four months and one day from the closing of the Offering) the warrants may be accelerated. There were no finders fees payable for the Second tranche of the placement,

The Company further notes that pursuant to its press release of April 8, 2024 , it has settled a cash payment due to Condor Resources Inc. in the amount of USD $85,000 / CAD $114,865 through the issuance of the same units offered to subscribers of the placement as noted above. The settlement has the Company issuing a total of 499,413 Units. Each Unit as defined above, having a hold period of Four months and a day. For more details of the payments to Condor please refer to the press release.

James C. Tworek, Chief Executive Officer and Director, commented:

Undoubtedly, our refocused corporate drive has garnered significant support from our investment community with this equity raising round seeing multiple up-sizings and closings.  The oversubscription of the Units underlines the trust and confidence placed in Element79’s vision and strategy, with this funding more clearly bringing into sight near-term ore extraction and revenue generation plans.

Use of Proceeds

Proceeds from the abovementioned sale of the Units will be used for operations, including the advancement of the social contract formalization in Peru to allow the long-term extension of the social license and ongoing Lucero project development plan to unfold. In addition, Certain Investor Relations initiatives will be engaged or extended in conjunction with this Financing with a portion withheld for general working capital.

About Element79 Gold Corp

Element79 Gold Corp is a gold and silver mining company committed to maximizing shareholder value through responsible mining practices and sustainable development of its projects.  Element79 Gold’s core 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 2024.

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 Portfolio are under contract for sale to Valdo Minerals Ltd., with an anticipated closing date in the first half of 2024.  The Company has also signed an Option Agreement to sell the Maverick Springs project, an advanced-stage exploratory property with an 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) and anticipates completing this sale on or before July 21, 2024.

In British Columbia, Element79 Gold has executed a Letter of Intent and funded a drilling program to acquire a private company that 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 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 subsidiary, Synergy Metals Corp, and is advancing through the Plan of Arrangement spin-out process. For more information about the company please visit our official website at www.element79.gold

Element79 Gold is a market awareness client of Capital 10X.

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Duane Hope is a Partner at Capital 10X, he brings over 15 years of communications and research experience to the firm. His research and writing have appeared in publications for North American, European and Asian audiences.


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