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Element79 Gold Announces Returns Shares to Treasury, Terminates Machacala Transaction
Vancouver, B.C. - TheNewswire - March 6 , 2023 – Element79 Gold Corp (CSE:ELEM) (OTC:ELMGF) (FSE:7YS) ("Element79 Gold", the "Company") is pleased to announce t
About this update from Element79 Gold Corp.
[{"type":"text","content":"Vancouver, B.C. - TheNewswire - 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 Project to mutual satisfaction 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 Termination to the board of directors of each of the Company and Calipuy, and has abstained from voting on Termination of the Agreement. About Element79 Gold Element79 Gold is a mining company focused on gold, sil...