Element79 Gold Corp. Sells Lucero Project in Peru for USD $2 Million
Vancouver, British Columbia — June 12, 2026 — Leads & Copy — Element79 Gold Corp. (CSE: ELEM | OTCQB: ELMGF | FSE: 7YS0), referred to as “Element79 Gold” or “ELEM,” has announced the signing of a binding Memorandum of Understanding (MOU) on June 10, 2026, for the sale of its wholly-owned subsidiary, Minas Lucero del Sur S.A.C. (MLDS). This transaction encompasses all assets related to the Lucero Project in Arequipa, Peru, including mining concessions, mineral rights, and permits.
The purchasers, identified as a private, arm’s length entity with a keen interest in the Lucero Project’s development, have agreed to acquire MLDS for a total consideration of USD $2,000,000. The closing of the transaction is anticipated by July 31, 2026. As a prerequisite for proceeding, the purchasers will provide an immediate, non-refundable deposit of USD $300,000. This deposit will be applied to the total purchase price at closing and is strictly non-refundable under any circumstances.
Element79 Gold stated that this divestiture follows a comprehensive strategic review by its Board of Directors. The review considered the long-term financial and operational implications of maintaining the Lucero Project, which has been under force majeure conditions since June 2025. The Board concluded that selling the asset is the most prudent strategy to mitigate current and future contractual liabilities, concession maintenance expenses, community relations costs, and contingent obligations.
The company had previously declared force majeure on the Lucero Project due to persistent social and community-related challenges that hindered its ability to progress operations and meet contractual milestones. Element79 Gold believes that a private ownership structure, supported by a focused investor group committed to Peruvian-based negotiations and community engagement, will be better equipped to advance discussions with the Comunidad Campesina de Chachas and other local stakeholders.
James C. Tworek, a Director of Element79 Gold, emphasized the weight of the decision, stating, “This decision was not made lightly. Lucero had once been the cornerstone asset of Element79 Gold for several years, and we remain highly confident in the geological merit and long-term value of the project.” He further explained, “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.” Tworek added, “We believe transitioning Lucero into the hands of a private group capable of dedicating substantial localized resources toward community and social negotiations represents the best path forward for all stakeholders.” He also noted the company’s pivot towards advancing its Battle Mountain, Nevada projects – Gold Mountain and Elephant – which was announced last June, and that this asset sale will facilitate greater focus on developing those assets.
Approximately USD $1,100,000 of the sale proceeds will be allocated to outstanding progress payments and contractual obligations owed to Condor Resources Ltd. concerning the original acquisition agreements for the Lucero Project. An additional USD $280,000, plus associated fees, will be used for maintaining the Lucero concessions and mineral rights in good standing before June 30, 2026. Following these payments, the Company projects retaining net proceeds of approximately USD $600,000.
Upon closing, the purchasers will assume all rights, obligations, liabilities, community negotiation responsibilities, permitting matters, formalization processes, and future contractual duties pertaining to the Lucero Project, including any subsequent negotiations with Condor Resources Ltd. under the initial acquisition agreements.
The MOU also includes a contingent participation right for Element79 Gold. Should the purchasers complete a subsequent sale or monetization transaction of the Lucero Project within eighteen months of closing, Element79 Gold is entitled to twenty-five percent (25%) of the gross profit realized above $10,000,000, subject to the terms outlined in the MOU.
The Lucero Project, situated in southern Peru’s Arequipa region, is a past-producing, high-grade gold and silver mining asset covering approximately 10,813 hectares. The property features numerous historically identified epithermal veins, with a limited number having experienced prior commercial production. Historical data suggests average gold grades of approximately 19 g/t Au during previous operations; however, Element79 Gold has not independently verified these figures in accordance with NI 43-101 standards, and they should not be relied upon. The project includes significant underground workings, existing mine infrastructure, and potential for tailings reprocessing.
Element79 Gold Corp. is a mining company focused on exploring and developing high-grade gold and silver assets. The company is advancing its exploration portfolio in Nevada, including the Gold Mountain and Elephant projects along the Battle Mountain trend, while also exploring strategic initiatives to enhance shareholder value through disciplined capital allocation and asset optimization.
Source: Element79 Gold Corp.
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