Element79 Gold Corp (CSE:ELEM) has entered into a letter of intent with a private party to acquire the Gold Mountain Project in Nevada, US.
The Gold Mountain Project, covering 284 hectares, is considered to present “compelling” upside potential with structurally controlled gold-silver-lead mineralisation and evidence of porphyry-style mineralisation within and around the Gold Mountain intrusive.
As part of the letter of intent, Element79 will issue 100 million shares to the undisclosed vendor at $0.02 per share or the volume weighted average price of its shares over the 10 trading days preceding the closing date.
The transaction, which is expected to be completed by 30 June 2025, is subject to completing due diligence, executing a definitive asset purchase agreement, and receiving all necessary approvals.
Element79 notes the vendor has agreed to a 180-day exclusivity period during which it will not negotiate or solicit offers from third parties concerning the project.
CEO James Tworek says this acquisition drives the company’s corporate pivot back to a Nevada-focused strategy.
“Gold Mountain is drill-ready and upon closing, we will work towards a drilling program later this year,” Tworek says.
“It also consolidates our position within a well-known and highly prospective region for mineral resource development, with meaningful upside potential.”
The exploration plan includes detailed mapping, followed by a reverse circulation drilling program which will delineate targets along historically mineralised structures and test conceptual porphyry and skarn-type systems.
Further, there is no historical technical report of the project. Element79 intends to complete this report in 2025, post-acquisition of the Gold Mountain Project.
Meanwhile, Element79 has entered into a settlement agreement with a third party, NQ Holdings, to resolve a dispute regarding the overlapping mining claims in Lander County, Nevada.
As part of the agreement, the company will transfer and abandon its interest in the EC01 and EC23 unpatented mining claims, known as the Elder Creek claims. Element79 will receive US$14,000 ($21,623) cash from NQ Holdings.
The Elder Creek claims no longer held strategic value for Element79 and the transaction allows the company to resolve the matter without further legal proceedings and maintain its focus on higher priority assets.
Element79 Gold Corp is a Canadian-headquartered mining company focused on exploring and developing gold and silver assets. The company also owns the Lucero Project in Peru, where it aims to resume operations through conventional mining and tailings reprocessing.
Write to Aaliyah Rogan at Mining.com.au
Images: Element79 Gold Corp
