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Element79 Gold Announces Non-Brokered Private Placement of up to C$1,000,000

Cash-strapped junior secures survival financing and divests distressed Peruvian asset to pivot to Nevada exploration.

By The Northwire Desk — AI Analysis Jun 12, 2026 · 12:00 ELEM · 0.025 Element79 Gold Corp.

Executive Summary

Element79 Gold Corp. announced a non-brokered private placement of up to 55,555,556 units at C$0.018 per unit, targeting up to C$1,000,000 in gross proceeds.
Each unit comprises one common share and one transferable warrant exercisable at C$0.05 for a 24-month term, featuring an acceleration provision if the share price reaches C$0.10 for ten consecutive trading days.
Net proceeds will be allocated to general working capital, ongoing exploration, and project advancement.
Concurrently, the company signed a binding MOU to sell 100% of its Lucero project in Peru for $2,000,000 USD, netting approximately $600,000 USD after settling obligations and maintaining concessions.
The divestiture eliminates financial and contractual liabilities from a project halted by force majeure since June 2025, allowing management to refocus capital and attention on the Nevada-based Gold Mountain and Elephant projects.

Material Impact

The private placement directly addresses the company's severe liquidity crunch, providing a critical cash infusion to mitigate the explicitly stated going concern risk.
The Lucero divestiture removes a dormant, liability-generating asset and generates immediate net cash, streamlining the corporate structure and reducing ongoing overhead.
The transaction is dilutive, adding ~27% to the current share count, but is a standard survival mechanism for exploration-stage juniors with depleted cash reserves.
The warrant structure and low exercise price indicate a need to sweeten the deal for investors in a risk-off environment, but the acceleration provision offers upside potential for shareholders if the stock recovers.

ELEM · Price

Company Overview

Element79 Gold Corp. is an exploration-stage mining company focused on gold and silver projects in Nevada, Canada, and Peru.
The company's primary operational focus has shifted to the Battle Mountain District in Nevada, specifically the Gold Mountain and Elephant projects, which host skarn and porphyry gold-copper potential.
The Lucero project in Peru has been divested following prolonged force majeure conditions.
The Dale gold project in Timmins, Ontario, is in the process of being spun out to Synergy Metals Corp. via a plan of arrangement.
The company is in the pre-revenue exploration phase, relying entirely on equity financing and asset sales to fund operations.

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