Element79 Gold (CSE:ELEM) has entered into a memorandum of understanding (MoU) for the sale of the Lucero Project in Peru.
Under the MoU with a private arm’s length purchaser that has closely followed Lucero, Element79 will receive US$2 million ($2.82 million). The deal is expected to close on or before 31 July 2026.
The purchaser will also immediately pay Element79 a US$300,000 non-refundable deposit.
The funds will be used to progress payments and contractual obligations owed to Condor Resources relating to the original acquisition of Lucero. Once paid, Element79 expects to retain US$600,000 in net proceeds.
Element79 is also conducting a non-brokered private placement of up to 55.55 million units at C$0.018 ($0.02) per unit for C$1 million. Each unit will comprise one common share and one common share purchase warrant. The warrants are exercisable at C$0.05 within a 24-month period.
The funds will be used for general working capital purposes, ongoing exploration, and project advancement.
The announcement follows an extensive strategic review regarding the financial and operational exposure associated with Lucero under ongoing force majeure conditions in June 2025.
Director James Tworek says Lucero was a cornerstone asset for the company for several years.
“We remain highly confident in the geological merit and long-term value of the project,” Tworek says.
“However, after extensive debate and review, the board determined that carrying the project forward under ongoing force majeure conditions would expose the company and shareholders to increasing financial and contractual risk without a predictable timeline toward resolution.
“We believe transitioning Lucero into the hands of a private group capable of dedicating substantial localised resources toward community and social negotiations represents the best path forward.”
Tworek notes that Element79 announced its pivot towards advancing its Battle Mountain projects in Nevada, including Gold Mountain and Elephant, in June 2025.
“This asset sale helps increase focus on developing out those assets,” the Director says.
The Lucero Project is a past-producing gold and silver mining asset located in the Arequipa region of southern Peru.
Element79 Gold is focused on exploring and developing gold and silver assets in Nevada, US.
Write to Aaliyah Rogan at Mining.com.au
Images: Element79 Gold
