The next strategic Deal
Not long ago, Element79 Gold (WKN A3EX7N / CSE ELEM) sold its flagship Maverick Springs project in Nevada to an Australia for over CAD 5 million, primarily in order to focus more on its main project of putting the historic Lucero gold and silver mine in Peru back into operation. However, Element79’s project portfolio in Nevada included a whole series of other interesting projects. As has just been announced, three more of these have now been sold.
The projects being sold are Elder Creek, North Mill Creek and Elephant, all located in Lander County, Nevada. They go to a still-private company called 1472886 B.C. Ltd. from British Columbia with all rights and obligations as well as historical data and drill core material.
In return, Element79 Gold will receive a cash payment of USD 45,200 and a total of 5 million ordinary shares in a new company (NEWCO) into which these projects will be contributed. Assuming a share price of CAD 0.10, the company will receive a total of USD 545,200 for these three Nevada projects.
The transaction, like the sale of Maverick Springs to Australia’s Sun Silver (ASX:SS1) or the sale of projects to Centra Mining, is part of Element79’s broader strategy to realign the project portfolio acquired from Waterton Global Resource Management in 2021 to focus on the most promising assets while at the same time retaining an interest in the potential future success of the projects through the shares received.
The example of Sun Silver / Maverick Springs shows that this can be worthwhile. Element79 received 3.5 million Sun Silver shares at AUD 0.20 per share. The shares are currently trading at AUD 0.595 in Australia, almost three times as high…
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