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Element79 Gold Completes Rework of Final Payment Structure for Acquisition of Nevada Portfolio
Vancouver, British Columbia – TheNewswire - March 28, 2023 – Element79 Gold Corp (CSE:ELEM) (OTC:ELMGF) (FSE:7YS) (“Element79 Gold”, the “Company”) is pleased t
About this update from Element79 Gold Corp.
[{"type":"text","content":"Vancouver, British Columbia – TheNewswire - March 28, 2023 – Element79 Gold Corp (CSE:ELEM) (OTC:ELMGF) (FSE:7YS) (“Element79 Gold”, the “Company”) is pleased to announce it has successfully reworked the final payment structure due for the portfolio of Nevada assets that were purchased and announced on December 23, 2021. Original transaction terms Per the terms outlined in the Company’s news release of December 23, 2021, the Company paid $2,000,289.97 in cash payments and issued a total of 5,095,733 common shares on December 23. 2021. The Company further made a payment of $150,000 in 2022 to complete the “initial payment” and accounted for the final payment of CAD $2,000,000 via a Contingent Value Rights agreement (“CVR Agreement”) with Waterton Nevada Splitter, LLC (“Waterton”), with the final payment due on December 23, 2022. Updated final settlement terms As an update to the CVR Agreement, the Company has worked with Waterton to create an alternate structure. As part of the terms of the updated payment agreement, the final $2,000,000 milestone payment due will be converted into a two-year, zero-coupon debt facility with convertibility options priced at $0.15 and a 10% default interest rate. Prepayment by the Company is possible with a 60-day advance notice and paid at a 10% premium to the principal amount remaining. James Tworek, Element79 Gold’s CEO recounts: “Late last year, given the global economic conditions and overlaying market conditions for raising capital to complete this milestone payment, we proactively reached out to Waterton starting at the end of Summer to discuss alternate options. We found the discussions and negotiation processes fruitful, with Waterton being understanding the current investment climate. We feel that this solution is mutually beneficial and gives a strong vote of confidence in the Company’s share price growth potential given the conversion pricing and two-year timeline to maturity. We can close this chapter for the time being and can now focus energies on Element79’s core projects, generating revenue, and divesting of its non-core assets. About Element79 Gold Element79 Gold is a mining company focused on gold, silver and associated metals. Element79 Gold’s main focus is on two core properties: developing its previously-producing, high-grade gold and silver min...