Element79
Gold Corp Files for OTCQB Uplisting, Provides Financial
Update
VANCOUVER,
BC -- June 11, 2024 -- InvestorsHub NewsWire - Element79 Gold Corp.
(CSE: ELEM)
(OTC:
ELMGF) (FSE: 7YS) ("Element79", the "Company")
Announces that it has filed for an uplisting of
its US cross-listing from the OTC Pink to the
OTCQB. Further, the Company has
completed significant cash payouts to creditors and debt holders,
as well as has entered into a debt settlement agreement (the
"Settlement Agreement") to fully settle outstanding debts owed to
creditors (the "Creditors") as well as for Director Services and
corporate Consulting services rendered.
Highlights:
-
The Company has filed for an uplisting of its current OTC Pink
cross-listed stock (OTC:
ELMGF) to the OTCQB.
-
Aggressive reduction of Debt and AP, dramatically improving the
balance sheet for stronger financial health and helping set the
stage for future financings
-
New Shares for Debt totaling $568,710.61 to clear quarterly Board
Fees, payments to Officers and Management for backdated salary, and
some creditors, priced at 0.23, aligning these parties along with
investors from the Company's most recent capital raise.
OTCQB Uplisting
In a move to align itself with the increasing interest from the
investment community in the United States, Element79 Gold Corp is
pleased to announce that it has applied to upgrade its position in
the public markets and increase its visibility to a wider range of
investors by up-listing its common shares listed for the trading
from the current OTC Verified Pink listing to the OTCQB Venture
Market (OTCQB).
The
OTCQB is the premiere marketplace for entrepreneurial and
development stage US and international companies that are committed
to providing a high-quality trading and information experience for
their US investors. To be eligible to trade on the OTCQB, companies
must be current in their financial reporting, pass a minimum bid
price test, and undergo a company verification and management
certification process every six months.
The
listing of the Company's common shares on the OTCQB remains subject
to the approval of the OTCQB. Future
announcements will be made regarding the status of the OTCQB
application.
Significant Reduction of Debt
As previously reported, in conjunction with the sale proceeds of
Maverick Springs, the Company confirms the complete and final
paydown of the Waterton Contingent Value Rights agreement; a total
of CAD $2,200,000 was paid in this regard, counting all principal,
interest and fees.
Further capital derived from the sale of Maverick Springs has been
used to pay down and close out additional loans and large accounts
payable; final amounts will be confirmed in the Company's upcoming
3rd Quarter financial statements, which are currently on track to
be completed on or before their due date.
Shares for Debt
Pursuant to settlement agreements, the Company has agreed to issue
an aggregate of 1,244,396 common shares ("Shares") at a deemed
price of $0.23 per Share (the "Share Settlement").
The Company anticipates closing the Share Settlement on or about
June 14, 2024. The Share Settlement will settle $235,210.61 in
debts owed to the creditors, which is a full settlement for the
total amount of bona fide debts owed to the creditor.
The board of directors of the Company has determined that it is in
the best interests of the Company to settle the outstanding debts
by the issuance of the Shares to preserve the Company's cash for
working capital.
The Company further announces the issuance of 1,244,396 Shares at a
deemed value of $0.23 per Share to two insiders pursuant their
respective consulting agreements in which there was a trigger event
(the "trigger shares") due to an issuance of shares to a
control person as previously announced on November 17, 2023, and
approved by shareholders at a special meeting held December 19,
2023.
The insider portion of the Share Settlement including the trigger
shares, is an aggregate of $333,500 and is exempt from the
valuation and minority shareholder approval requirements of
Multilateral Instrument 61-101 ("MI 61-101") by virtue of
the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI
61-101 in that the fair market value of the consideration for the
securities of the Company to be issued to insiders does not exceed
25% of its market capitalization. All Shares issued to settle the
debt are subject to a hold period of four months and one day from
the date of issuance.
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 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 holds 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 www.element79.gold
Contact Information
For
corporate matters, please contact:
James C. Tworek, Chief Executive Officer
E-mail: jt@element79.gold
For
investor relations inquiries, please contact:
Investor Relations
Department
Phone: +1.403.850.8050
E-mail: investors@element79.gold
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 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.