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Element79 Gold Enters into Definitive Agreement for Acquisition of High-Grade Peruvian Gold Portfolio
Historic production averaging up to 19 g/t Au Equivalent, Recent sampling returned up to 116 g/t Au Equivalent, Includes one of the highest-grade underground mi
About this update from Element79 Gold Corp.
[{"type":"text","content":" Historic production averaging up to 19 g/t Au Equivalent, Recent sampling returned up to 116 g/t Au Equivalent, Includes one of the highest-grade underground mines in Peru's history VANCOUVER, BC / ACCESSWIRE / June 20, 2022 / Element79 Gold Corp. (CSE:ELEM) (OTC PINK:ELMGF) (FSE:7YS) (\"Element79 Gold\", or the \"Company\") today announced that it has entered into a definitive share purchase agreement dated June 19, 2022 (the \"Agreement\") for the acquisition (the \"Acquisition\") of all of the issued and outstanding common shares of Calipuy Resources Inc. (\"Calipuy\") which, through its subsidiaries, holds 100% interest in two past producing high-grade gold-silver mines: the Lucero mine (\"Lucero\"), one of the highest-grade underground mines in Peru's history(1) at grades averaging 19.0 g/t Au Equivalent (\"Au Eq\") (14.0 g/t gold and 373 g/t silver),(2) as well as the Machacala Project (\"Machacala\", and together with Lucero, the \"Properties\") which averaged production grades of 10.5 g/t Au Eq (6.0 g/t gold and 340 g/t silver).(3) Operations were suspended in 2005 at Lucero and 1991 at Machacala due to the persistence of low gold and silver prices at the time. Terms of the Agreement Pursuant to the Agreement, the Company will acquire all of the issued and outstanding securities of Calipuy (the \"Acquisition\"). Calipuy is a private British Columbia corporation which, through its subsidiaries in Peru, holds a 100% interest in the Lucero property and Machacala property, subject to certain royalties, encumbrances and other interests, as more particularly described in the Agreement. On closing of the Acquisition (the \"Closing\"), the USD$15 million purchase price for the shares of Calipuy will be paid by the issuance on a pro rata basis to the shareholders of Calipuy (the \"Calipuy Shareholders\") of (i) an aggregate of 19,165,486 common shares of the Company at an issue price of CAD$1.00 per share (the \"Consideration Shares\") and (ii) performance bonus warrants to acquire an aggregate of 3,833,085 common shares of the Company (the \"Performance Bonus Warrants\"). Each Performance Bonus Warrant is exercisable into one common share of the Company at an exercise price of CAD$2.00 per share for a period of three years from Exercise Eligibility Date (as defined herein), subject to achievement of the Bonus Performance Target...