Element79 equity financing upsized to $10 million
Element79 Gold Corp [ELEM-CSE, ELMGF-OTC PINK, 7YS-FSE] said Thursday it is doubling the size a previously announced equity drawdown facility to $10 million.
The company said the additional financing is being made available as a result of an amendment dated May 2, 2022, to the original investment and advisory agreement with Crescita Capital LLC.
Element79 said it is able to make drawdown requests for financing, from time to time, pursuant to the facility. On closing of each drawdown, it will issue common shares to Crescita in accordance with the terms of the agreement.
Element79 is a Canadian gold exploration company with a focus on the acquisition and development of high-potential gold assets located in favourable, established mining jurisdictions, including Nevada, British Columbia and Ontario.
Its assets include the “Battle Mountain Portfolio,” which consists of 15 separate projects that cover over 44,478 across 2,203 unpatented claims in five counties.
The company completed an IPO in August, 2021, on the Canadian Securities Exchange. On Thursday, the shares rose 2.25% or $0.02 to 91 cents in light trading. The shares currently trade in a 52-week range of $1.65and 67 cents.
Element79 recently released an updated National Instrument 43-101-compliant resource estimate for its flagship Maverick Springs project in northeastern Nevada. On Thursday, the company said it has fully utilized the initial $5 million of Crescita’s invested capital in its corporate development and project advancement since the IPO, including completing the phase 1 exploration program at the Dale property (southwest of Timmins, Ont.), the drilling program at the Snowbird property (in British Columbia) and closing on the acquisition of the Nevada portfolio.
Element79 said it intends to utilize the additional capital to continue progress on its high-tempo development strategy, including the upcoming acquisition of the high-grade Peruvian gold portfolio of Calipuy Resources Inc., the continued advancement of the NI 43-101-compliant mineral resource at the company’s Maverick Springs project and further exploration of the Battle Mountain portfolio.
Near term, additional diamond drilling and metallurgical studies are planned to enable a significant portion of the Maverick Springs resource to be upgraded from the inferred to indicated category.
Meanwhile, Element 79 is required under the amended agreement to make a top up payment to Crescita in the event that the volume weighted average price of the company’s common shares is less than the subscription price paid by Crescita for a particular drawdown in the 30 days following the drawdown. The new agreement amends the fees payable to Crescita for the second commitment.